Front Line Insights

Statistical analysis and insight into activity and trends in M&A and capital markets.


Conversion and Other Macro Trends Drive M&A Activity in Building Technologies

Friday, May 19, 2017

Over the past decade, building technologies has emerged as a distinct sub-sector and an impressive growth story in the broader construction industry. As homeowners and tenants of commercial properties increasingly demand enhanced design options, superior performance attributes, and reduced environmental impact from their buildings, manufacturers of differentiated, highly engineered products have exhibited above-market growth rates and superior value-added margins, gaining market share from companies that produce more commoditized products.

The impressive financial performance and strong, defensible market positions of building technologies companies, as well as the opportunity to continue gaining market share amid the ongoing construction recovery, have attracted significant interest from strategic acquirers and financial sponsors. In this article, we look at some of the characteristics that define building technologies as a sector, as well as several of the trends that are driving the growth of the sector and the premium valuations that these companies are able to command.

Highlights of this report include:

  • Characteristics of building technologies companies versus traditional building products companies
  • Ongoing conversion to specialty building products across residential and commercial construction
  • Trends driving the growth of the building technologies sector
  • Strategic and financial acquirers continue aggressive pursuit of building technologies assets

Building-Technologies-chart-May-2017



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