As the construction market rebounds from the recession, mergers and acquisitions are on the increase. Some firms are looking to grow, while others seek a buyout. Aging company owners prepare to retire and sell their businesses as part of an exit strategy, while others look for new ownership to rescue flailing businesses after a prolonged downturn.
"We're definitely seeing an uptick in mergers and acquisitions among contractors," says Landon Funsten, managing director in the Raleigh, N.C., office of consultant FMI Corp. "For years, there has been so much uncertainty. Most firms have been in survival mode, trying to live to fight another day. Now that there are more opportunities, contractors are ready to grow."