Competitiveness and survival drive firms to consider mergers or acquisitions

by anthony_capkun_2 | August 20, 2026 8:37 am

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When assembling its AIA/Deltek Architecture Billings Index (ABI) score for July 2026[2], the American Institute of Architects[3] asked firms about merger and acquisition (M&A) activity in the architecture industry.

Overall, 30% of responding firm leaders reported they have either gone through with an M&A or actively considered one over the last year.

Large firms with annual billings of $5 million or more (43%), firms located in the South (39%), and firms with a commercial or industrial specialization (35%) were the most likely to report having gone through with, or actively considered, an M&A.

Of the different types of M&A activities:

• 10% of firms indicated they actively considered being acquired by another firm
• 8% actively considered acquiring another firm
• 8% actively considered merging with another firm
• 4% carried out an M&A with another firm

In addition, 29% of firms indicated they completed or considered an internal ownership transition over the last year. However, slightly more than half of firms (54%) reported they have not engaged in any merger, acquisition, or ownership transition activity over the past year.

At the firms that have participated in, or considered, an M&A over the past year, 54% rated these two factors as very important in their decision:

• Ability to compete more effectively
• Survival

An additional 53% of respondents considered an M&A for its ability to:

• add new markets
• serve a broader area
• develop an international presence
• add greater project diversity to hedge against economic and construction cycles

Overall, more than half of responding firms (59%) think it is unlikely that their firm will be acquired by or merge with another firm over the next three to five years. However:

• 23% think it is likely
• 18% think it is neither likely nor unlikely

Further, 14% of responding firms think it is likely their firm will acquire another firm over the next three to five years, while 69% think it is unlikely, and 18% think it is neither.

Regarding overall trends, 65% of responding firm leaders believe M&A activity among U.S. architecture firms is likely to increase over the next several years, with only 2% expecting it will decrease, and 15% anticipating it will remain at current levels.

— With files from AIA

Source URL: https://www.metalarchitecture.com/news/competitiveness-and-survival-drive-firms-to-consider-mergers-or-acquisitions/

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