Sector information: engineering firm

Engineering firms are specialized businesses engaged in technical consulting, design, engineering and project management in various disciplines. Here are some common types of engineering firms:

• Civil engineering firms: Specializing in civil engineering projects such as planning and development of roads, bridges, tunnels, dams, ports and other infrastructure.
• Construction engineering firms: Involved in structural engineering projects, including the design and construction of buildings, homes, offices and industrial facilities.
• Mechanical engineering firms: Focus on projects in mechanical engineering, such as machine design, manufacturing processes, and HVAC (heating, ventilation and air conditioning) systems.
• Electrical engineering firms: Specialize in electrical engineering projects, such as the design and installation of electrical systems, electronics, and automation systems.
• Electronic and communication engineering firms: Focused on electronic and communications technologies, including telecommunications networks, wireless systems, and information technology.
• Environmental engineering firms: Engage in environment-related projects, such as soil remediation, water management, air and water quality, and sustainability.
• Geotechnical engineering firms: Specializing in geotechnical investigation and design, focusing on soil conditions, foundations and site stability.
• Energy and sustainability consulting firms: Focus on projects related to energy generation, energy efficiency, and renewable energy sources.
• Spatial planning and urban engineering firms: Involved in urban planning, land use planning and urban environment design.
• Maritime engineering firms: Focused on maritime and offshore projects, including the planning and development of ports, offshore platforms and ship designs.
• Process and chemical engineering firms: Specialize in the process industry, including the chemical, petrochemical and food industries.

What to look out for when buying an engineering company

There are several important considerations when considering acquiring an engineering firm. Here are some essential considerations:

• Quality assurance and certification: Check that the engineering firm meets industry quality standards and certifications. Quality assurance systems can be important, especially if the firm is involved in regulated industries.
• Financial Health: Analyze the financial health of the engineering firm by examining financial statements, income statements, balance sheets and cash flows. This provides insight into the stability and growth potential of the business.
• Intellectual property and current contracts: Examine the firm's intellectual property, especially if it relates to unique designs or patented technologies. Examine ongoing contracts with clients and suppliers.
• Personnel management and retention: Assess the engineering firm's personnel management, including retention of experienced employees, management quality and staff development plans.