Blog Author

Nicole Kiriakopoulos

E: nicolek@pcecompanies.com

Follow me: LinkedIn

Industry Trends

Apex Companies Acquires Johnson Engineering

Apex Companies, LLC has acquired Johnson Engineering, a leading civil engineering firm in Florida, to strengthen its expertise in water, transportation, and environmental services. Operating as "Johnson Engineering, an Apex Company," this acquisition enhances Apex’s ability to serve both public and private clients across the state. This partnership is significant to the industry as it highlights the growing trend of firms consolidating capabilities to meet the increasing demand for comprehensive, multidisciplinary engineering solutions in a competitive market.1

Job Cuts Continue for Big Four Accounting Firms

In Q3 2024, PwC announced 1,800 layoffs, following similar actions by Big Four peers earlier in the year. KPMG, Deloitte, RSM, and EY have cut 1.5% to 5% of their workforce in 2024. The layoffs primarily affected consulting divisions as demand for advisory services declined due to inflation and rising interest rates. The firms are now prioritizing technology, AI, and ESG services, realigning resources toward these growth areas while scaling back in less profitable segments like deals advisory.2 3

BKF Engineers Partners with Long Point Capital

BKF Engineers, a leading West Coast civil engineering firm, has partnered with Long Point Capital (LPC), a New York-based private equity firm specializing in the A/E/C industry. The partnership will leverage LPC's capital and strategic expertise to expand BKF’s service offerings and geographic reach. BKF will continue under its current leadership while enhancing its business platform. This collaboration reflects the broader trend in the industry of leveraging private equity to accelerate growth and expand into new markets.4

Online Legal Services Boom: Market Reaches $13.4B, Fueled by Tech

The Online Legal Services industry has grown 5.7% annually, reaching $13.4 billion in 2024, and is expected to hit $17.7 billion by 2029. Technological advancements like automation and AI are driving this expansion, making legal services more accessible and cost-effective. This is crucial for the professional services industry, signaling a shift towards digitization and increased competition, forcing traditional firms to adapt to innovative solutions to stay relevant and meet evolving client demands.5

Private Equity Investments Transform the Accounting Industry

Private equity (PE) investments are reshaping small accounting firms by providing capital, operational expertise, and growth opportunities. Over the past three years, PE firms have invested in five of the top 26 accounting firms, contributing to a 5.7% increase in revenue. Recent investments are in reaction to broader changes in the industry, where larger firms are focusing on technology and AI, while PE-backed small firms grow in competitiveness, reflecting a shift in industry priorities and strategies.6

Largest Transactions Closed

  • Target
  • Buyer
  • Value($mm)
  • U.S. Silica Holdings, Inc.
  • Apollo Global Management, Inc.
  • $2,152.40
  • Rockwood Service Corporation
  • Acuren Corporation
  • $1,850.00
  • Strada
  • H.I.G. Capital, LLC
  • $1,200.00
  • Micromeritics Instrument Corporation
  • Malvern Panalytical Limited
  • $683.00
  • Ge Trademark Licensing, Inc.
  • Dolby Laboratories, Inc.
  • $429.00
  • Blockware Mining, LLC
  • Riot Platforms, Inc.
  • $139.63
  • Global Resources, Inc.
  • Winner Medical Co., Ltd.
  • $120.00
  • Bishop, Inc.
  • Equity Residential
  • $108.00
  • Ascend Elements, Inc.
  • SKS Private Equity
  • $98.23
  • Keypath Education International, Inc.
  • Sterling Partners
  • $47.53

Other Financial Buyer Transactions Closed

  • Target
  • Buyer
  • Value($mm)
  • Reference Point LLC
  • Resources Connection, Inc.
  • $23.80
  • The Expert Institute Group, LLC
  • Levine Leichtman Capital Partners, LLC
  • n/a
  • SePRO Corporation
  • Goldman Sachs Asset Management, L.P.; Stanley Capital Partners LLP
  • n/a
  • Frasco, Inc.
  • AccuSourceHR, Inc.
  • n/a
  • Ascend Elements, Inc.
  • Redwire Corporation
  • n/a

Other Strategic Buyer Transactions Closed

  • Target
  • Buyer
  • Value($mm)
  • Plant Health Care plc
  • PI Industries Limited
  • $41.95
  • Clarence J. Venne, LLC
  • Pollard Banknote Limited
  • $12.60
  • Johnson Engineering
  • Apex Companies
  • n/a
  • Cleary Benefits Group, Inc.
  • Arthur J. Gallagher & Co.
  • n/a
  • Substantially all the assets of S&G LLP
  • Citrin Cooperman Advisors LLC
  • n/a

 

Source S&P Capital IQ as of 10/9/2024 and PCE Proprietary Data

PCE Transactions

Contacts

Nicole Kiriakopoulos

Chicago Office

224-520-1068 |

Read More

Michael Rosendahl

New York Office

201-444-6280 Ext 1 |

Read More

Joe Anto

New York Office

407-621-2141 |

Read More

Data Assumptions

This report represents transaction activity as mergers & acquisitions, consolidations, restructurings and spin-offs. Targets are defined as U.S. Based companies with either foreign or U.S. based buyers. Transaction information provided is based on closed dates only.

Glossary

EBIT - Earnings Before Interest and Taxes
EBITDA - Earnings Before Interest, Taxes, Depreciation, Amortization
LTM - Last Twelve Months
TEV - Total Enterprise Value

Sources:

  1. 1. Trahan, L. “Apex Companies, LLC Acquires Johnson Engineering.” Apex AP, 3 September, 2024.
  2. 2. Iacone, Amanda. "Big Four Reshape Consulting Workforce, Strategy With Rare Layoffs." Bloomberg Tax, 3 Oct. 2023.
  3. 3. Consultancy.uk. “PwC US to lay off 1,800 employees.” Consulting Point, 27 September, 2024.
  4. 4. BKF Engineers. “BKF Engineers Partners with Long Point Capital and Creates Unlimited Opportunities.” BKF Engineers, 5 September, 2024.
  5. 5. IBISWorld, “Online Legal Services in the US.” IBISWorld, September, 2024.
  6. 6. Britton, N. “The rise of private equity in accounting: Not just for large firms anymore.” Thomson Reuters, 20 August, 2024.
RELATED RESOURCE
RELATED RESOURCE

Keys to Selling Your Digital Agency

Read now
contact usan image