For the M&A markets, 2021 was a boom year. Potential increases in capital gains taxes, pent-up demand from 2020, and liquid capital markets contributed to both strategic and financial buyers being extremely active. Multiples for sellers, especially in the “hot” end markets of utilities, telecom, and water/wastewater, increased significantly. Private equity again played a major role as new platforms were created or existing ones executed a high volume of add-on acquisitions. The second half of 2021 was one of the busiest the industry has ever seen, and this pace shows no signs of slowing down as we enter 2022.

Key Takeaways

• 2021 started slowly as markets recovered from 2020 and facilities were slow to open
• There was a strong rebound in all three major start types: residential, non-residential, and non-building
• M&A markets rebounded strongly, with the second half of 2021 extremely robust
• Utilities, telecom, infrastructure, and technology-oriented end markets are particularly strong
• Inflation and demand for labor could be governors on growth