Dive Brief:
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The number of mergers and acquisitions among engineering and construction firms tripled in 2014, according to PricewaterhouseCoopers.
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The accounting giant counted 218 mergers and acquisitions worth more than $172 billion. In 2013, that activity was worth $55 billion.
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Still, M&A activity in 2015 fell short of the 10-year high set in 2007.
Dive Insight:
The huge increase in mergers and acquisitions is due, in large part, to more than 21 “megadeals” worth a combined $127 billion that closed in 2015—including four in the fourth quarter, PwC reported.
The reason: “Companies [are] seeking to better position themselves for ‘mega projects’ that not only require a longer commitment of time and capital, but also deeper pools of highly skilled talent,” said H. Kent Goetjen, U.S. engineering and construction leader at PwC. “The lack of available talent, which is being fueled in the U.S. by the retirement of the baby-boomer generation, is driving up the price of acquisitions and will continue to do so for the foreseeable future.”