The M&A swell over the last two years shows no signs of dissipating, and it certainly has the potential to get even bigger. But the wind is making conditions out there a little less predictable and it remains to be seen whether 2022 is in for a legendary ride or blown out conditions.

Last year 2020 Environmental Group reported the environmental consulting industry weathering the COVID storm as an “essential business” along with a prediction that the industry might see a modest 4-6% drop in FY2020 revenues versus the record high year for the industry in 2019.

What occurred over the last 18 months was not only a surprise but cause to celebrate the heightened importance of the environmental industry as a whole.

2020 Environmental Group ("2020") is pleased to announce that Paleo Solutions, Inc. ("Paleo"), a full-service natural resources and cultural resources management consulting firm headquartered in Monrovia, CA, with offices in with offices in Redlands, CA and Denver, CO, has been acquired by Stantec. 2020 initiated the transaction and served as the M&A Advisors to Paleo.

2020 Environmental Group ("2020") is pleased to announce that WestLand Engineering and Environmental Services, Inc. ("WestLand"), an engineering and environmental services firm headquartered in Tucson, AZ has merged with EM Strategies, Inc. an environmental services firm located in Reno, NV. 2020 initiated the transaction and served as the M&A Advisors to WestLand.

2020 Environmental Group ("2020") is pleased to announce that PES Environmental, Inc. ("PES"), an environmental and engineering consulting firm headquartered in Novato, CA, with offices in Seattle, WA and Veneta, OR, has been acquired by NV5. 2020 initiated the transaction and served as the M&A Advisors to PES.

2020 Environmental Group ("2020") is pleased to announce that SWCA, a nationwide environmental consulting firm headquartered in Phoenix, AZ, has acquired Sycamore Environmental Consultants ("Sycamore"). 2020 served as the M&A buy-side advisors to SWCA and initiated the transaction with Sycamore.

2020 Environmental Group ("2020") is pleased to announce that Earth Consulting Group ("EarthCon"), a 90-employee US-based environmental and engineering consulting firm headquartered in Atlanta GA, with offices in Texas and California, has been acquired by WSP. 2020 initiated the transaction and served as the M&A Advisors to Earthcon.

2020 is pleased to announce that Environmental Planning Group ("EPG"), an environmental planning, permitting and design consulting firm based in Phoenix, AZ, has been acquired by Terracon. 2020 initiated the transaction and served as the M&A advisors to EPG. 

2020 Environmental Group is pleased to announce that Flight Evolved, a digital transformation leader with specialized expertise in geospatial data analytics using drones, has been acquired by Copley Equity Partners in a simultaneous merger with Aethon Aerial Solutions. 2020 served as the M&A advisors to Flight Evolved on its recapitalization and sale process to Copley, and advised FE on the co-merger agreement with Aethon.

Considerations for M&A Strategies and Valuations

The global COVID-19 pandemic has disrupted the business of environmental and engineering consulting, and is causing buyers and sellers to reassess M&A timing and strategies.  However, it could also prove to be an unexpected catalyst of M&A activity, further driving industry consolidation, buyers looking for deals, and sellers deciding now is the time to get their equity off the table.

We took a closer look at M&A under these uncertain times, and found some interesting insights, including COVID as a force majeure event for valuations and other M&A considerations.