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Business Proposal #3

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Comprehensive Business Plan Assignment

Opportunity Description

* Engineering Consultation Industry Outlook and Trends

The engineering profession is the largest professional services sector generating over $1 trillion USD in global revenue annually compared to $360 billion USD for accounting and $500 billion USD for law. The top publicly traded firms have been experiencing positive growth, both organically and by merger & acquisitions. The following table lists the top 10 global engineering firms based on consulting and design (C&D) revenue:

Table 1: 2010 revenue of top 10 firms providing consulting engineering (C&D) and design Rank | Firm | C&D Revenue
US$m | Total Revenue
US$m | C&D Revenue as % of Total | 1 | AECOM | 5,920 | 6,546 | 90.4% | 2 | URS | 5,039 | 9,177 | 54.9% | 3 | Jacobs | 4,748 | 9,916 | 47.9% | 4 | WorleyParsons | 3,651 | 5,048 | 72.3% | 5 | CH2M HILL | 3,603 | 6,300 | 57.2% | 6 | AMEC | 3,399 | 4,565 | 74.5% | 7 | Fluor | 3,128 | 20,849 | 15.0% | 8 | Fugro | 3,001 | 3,022 | 99.3% | 9 | SNC-Lavalin | 2,849 | 6,001 | 47.5% | 10 | ARCADIS | 2,653 | 2,655 | 99.9% |
Source: Beaton Capital Where are consulting engineers heading? May 21, 2012

During the last ten years, there has been a strong trend for large American and International firms to acquire Canadian engineering consulting firms at a high rate. According to a KPMG spokesman, 40 merger and acquisitions (M&A) deals were expected to be concluded in the building/construction/engineering sector, worth an estimated $1.55 billion in 2013. The drive for acquiring engineering and architectural professional service firms by large publicly traded American and International firms is due to: * The stable healthy Canadian economy reflected in the profitable growth of engineering and architectural (E&A) consulting practice. The pace of

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