A Texas engineering firm serving heavy industry worldwide sold for $28M at 6x EBITDA, above its asking price. It is the largest deal on our published record. Engineering firms with long client relationships and a deep bench of licensed engineers are sought after by strategic acquirers and private equity backed engineering platforms.
Sold above asking
Multi-year relationships and a visible backlog of signed work give buyers confidence that revenue continues after closing.
Buyers need professional engineers who stay. Firms where stamping authority and client trust are spread across the team command higher multiples.
Work across several heavy industry sectors and regions reduces concentration risk and widens the pool of interested buyers.
Billable utilization and margins by project type show a buyer how efficiently the firm turns engineering hours into profit.
We start with a valuation grounded in closed deals, then recast the financials and build the confidential information memorandum buyers will review.
The business is presented anonymously to qualified buyers from our network of 7,950+ and on major marketplaces. Buyers sign an NDA before they learn the name.
We run several buyers through the process at the same time, so letters of intent arrive close together and price is set by competition.
We manage diligence requests, keep the deal on schedule and work with the owner's attorney and CPA through closing.
Engineering firms are usually valued on a multiple of EBITDA. The two engineering firms on our record sold at 3x and 6x EBITDA: $1.8M for a structural engineering firm in Arizona and $28M for this Texas heavy industry firm. Size, backlog, client concentration and team depth usually drive gaps like that.
Larger engineering and construction firms adding capability or geography, private equity backed engineering platforms, and industrial companies bringing engineering in house.
By putting several qualified buyers in the same process at the same time. When more than one buyer wants the business, competition sets the price, not a single negotiation. This firm sold above its asking price.
Most of our transactions close in 6 to 9 months, and most clients receive a letter of intent within 60 days.
See where your business sits before you talk to anyone.
Find out what buyers would pay for your business today. Quiet conversations have no downside.
Get a Free ValuationNo upfront fees. Completely confidential. No obligation.
Ask Vanla a question
A Vanla advisor replies by email, usually the same business day.
Got it.
A Vanla advisor will reply to shortly.