David J. Pfeffer, a Partner in Tarter Krinsky & Drogin’s Construction Practice Group, was quoted in the New York Construction magazine article on “Deal Builders.” The article addresses the significance of construction industry mergers and acquisitions and the importance of a strategic vision in making these deals.
David stated that in most cases, acquiring firms that survive today’s economic conditions will emerge stronger because of their deals. “They should have the resources to get the big projects, and competitors may not be as ready to compete,” he added.
A smart deal based on a strategic vision often enables a company to handle many types of construction and diversify its revenue streams, David noted. “It’s very rare for smaller or mid-sized regional players to be able to play in multiple fields without merging with another company,” he said.
While many construction firms are turning to mergers and acquisitions to help them weather bad economic times, David warned that mergers come “at great risk” if companies are focused only on merging operations and slashing expenses but don’t have a broader vision. “Cost-cutting is very tempting and can work, but if you don’t have revenues coming in, it won’t save the company,” he said.
Click here to read the entire article in New York Construction.
|Pfeffer, David J. Partner, Chair of Construction Group||Partner, Chair of Construction Group||212.216.8075|