Tag Archive for: Engineering & Construction Services

Electrical Services Market Update March 2025

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In our latest Electrical Services Market Update, we explore key forces shaping the sector – from rising consolidation and private equity activity to the growing influence of mega projects and evolving safety standards.

Gain timely insights and strategic takeaways to help you understand market dynamics, evaluate opportunities, and navigate the changing landscape of the electrical services industry.

Key takeaways from the Electrical Services Market Update include:

  • – Growing consolidation and private equity interest in electrical services
  • – Mega projects challenging smaller firms with cost overruns and labor shortages
  • – Potential for NFPA 70B adoption to drive new opportunities

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Luke Smith

Managing Director
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Key Trends in Power, Water, and Communications Infrastructure

Key Trends in Power, Water, and Communications Infrastructure: Utility Services Market 2025

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The utility services sector is at an inflection point, driven by surging energy demand, deteriorating infrastructure, and continued fiber deployment. According to BaseRock Partners Utility Services Market Report 2025, major outlays are expected across transmission and distribution networks, water systems, and broadband infrastructure. With a median 17% increase in CapEx among utilities and a growing backlog of infrastructure projects, industry players must stay informed to seize opportunities in the evolving landscape.

Surging Energy Demand and Grid Modernization

Following decades of flat growth, U.S. power demand is set to rise sharply, propelled by energy-intensive industries such as data centers. By 2030, data centers are projected to consume 12% of total U.S. electricity, significantly impacting grid infrastructure (BaseRock Partners Utility Services Market Report 2025).

In response, utilities are ramping up investments to modernize transmission and distribution networks, ensuring grid reliability amid rising demand. The report notes that

“major utilities are expected to increase capital expenditures by a median of 17% in the coming years.”

This capital allocation will prioritize system resilience, capacity expansion, and the integration of renewable energy sources.

Addressing America’s Aging Water Infrastructure

With more than 40% of U.S. drinking water infrastructure surpassing the 50-year mark, the need for investment is urgent. Outdated wastewater and stormwater systems are under increased pressure from more frequent and severe storms. “Frequent and intense storm events are straining outdated wastewater and stormwater systems, highlighting the need for resilience,” the report states.

Compounding these challenges is a workforce shortage in the water utility sector. “33% of utility operators can retire in 10 years, with only 10% under the age of 24,” creating a significant knowledge gap and potential delays in necessary infrastructure upgrades. Investments in workforce development, technology, and system resilience will be critical to ensuring long-term water security.

Fiber Expansion Faces Administrative Delays but Continues

The broadband industry remains on a strong growth trajectory, with fiber passing more than half of U.S. homes. By 2029, this figure is expected to exceed 90% of passable homes, with three key providers driving 75% of new passings (BaseRock Partners Utility Services Market Report 2025).

Despite this momentum, the report highlights a temporary slowdown: “An executive order issued in January has suspended the disbursement of BEAD funding as the new administration reviews the program.” While the extent of the impact remains uncertain, the near-term outlook for fiber remains strong, driven by private sector investment and state-level broadband initiatives.

Private Equity Fuels M&A Activity in Utility Services

Private equity firms remain highly active in the utility services sector, with significant transactions reshaping the competitive landscape. Some of the most notable deals include:

  • • Roark Capital’s partnership with GPRS (January 2025)
  • • Cerberus’ acquisition of Landmark Structures (December 2024)
  • • GridTek Utility Services’ sale from First Reserve to BlackRock (June 2024)

The report underscores that “Wall Street analysts expect a repeat of 2024 in 2025, with anticipated near-double-digit top-line growth and expanding backlogs.” For commentary on these sector trends and more, download the full BaseRock Partners Utility Services Market Report 2025.

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Luke Smith

Managing Director
720.846.0004

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Utility Services Market Update March 2025

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In our 2025 Utility Services Market Update, we explore key trends shaping the industry, from rising electricity demand and aging water infrastructure to ongoing fiber expansion and sector consolidation. With utilities ramping up investment and infrastructure upgrades accelerating, the need for modernization and resilience has never been greater.

Stay ahead with essential insights and expert analysis to navigate the evolving utility services sector.

Utility Services Market Update Insights & Megatrends include:

  • – Rising power demand drives major transmission & distribution investment
  • – Aging water infrastructure accelerates modernization and resilience efforts
  • – Fiber expansion continues, despite funding uncertainties
  • – Notable M&A transactions highlight ongoing utility services sector consolidation

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Luke Smith

Managing Director
720.846.0004

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BaseRock Partners Advises Allied Construction Services On Its Sale To An ESOP

BaseRock Partners Advises Allied Construction Services On Its Sale To An ESOP

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Denver, CO (March 13, 2025) – BaseRock Partners is pleased to announce the sale of Allied Construction Services (“Allied”) to an Employee Stock Ownership Plan (ESOP). BaseRock Partners (“BaseRock”) served as the exclusive financial advisor to Allied Construction Services throughout this process.

Founded in 1950 in Des Moines, Iowa by Robert Maddox, Allied Construction Services has built a reputation as one of the Midwest’s most trusted interior construction companies. With over 70 years of experience, Allied partners with general contractors, architects, developers, and building owners to deliver high-quality construction solutions. To support its continued growth, the company has expanded across Iowa, Illinois, Nebraska, and Kansas. In the early 1970s, Allied acquired Color Inc., now one of the largest painting contractors in the Midwest.

“Pursuing an ESOP was a natural choice for our company. We wanted to ensure our founder’s legacy lived on while preserving the culture and reputation that set us apart. Selling to an outside buyer couldn’t guarantee that continuity but transitioning ownership to the very people who helped build our success did,” said Bob Maddox, Chairman of Allied Construction. 

“Our accounting firm introduced us to BaseRock Partners, and from day one, they instilled confidence in us,” Maddox added.

“Their deep expertise and ability to clearly outline each step of the process made all the difference. The BaseRock team was with us every step of the way; educating, advising, and ensuring we had everything in place to achieve a successful outcome. Their professionalism and strategic guidance were invaluable. We couldn’t be more pleased with our experience and would highly recommend BaseRock to any company considering an ESOP.”

About BaseRock Partners

BaseRock Partners is an investment bank built to serve the engineering and construction industry. BaseRock advises clients using a team-oriented approach that combines decades of industry expertise, deep industry relationships, and unique transaction capabilities specifically designed to meet the needs of engineering and construction companies.

Contact BaseRock Partners

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Matthew Drake

Partner & Co-Founder
312.882.7649

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BaseRock Partners Advises Professional Electrical Contractors of Connecticut On Its Investment From Alaris Equity Partners

BaseRock Partners Advises Professional Electrical Contractors of Connecticut On Its Investment From Alaris Equity Partners

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Securing the Right Partner for Continued Growth

Professional Electrical Contractors of Connecticut (PEC), a full-service electrical contracting firm, recently secured a structured equity investment from Alaris Equity Partners. BaseRock Partners served as the exclusive financial advisor to PEC, ensuring that the transaction aligned with the company’s goals for growth, culture, and long-term stability.

For over four decades, PEC has been a trusted name in electrical contracting, with a broad range of capabilities, including commercial installations, historical structural retrofits, and large-scale Photovoltaic (PV) projects. Through its subsidiary, North American Renewables, Inc., PEC is also a leading solar engineering, procurement, and construction (“EPC”) contractor, serving the Greater New England and New York regions.  

As PEC explored its next chapter, its leadership sought an investment partner that would provide financial strength while preserving its core values and operational independence.

Why Professional Electrical Contractors of Connecticut Chose BaseRock Partners

PEC needed an advisor that truly understood the industry, its challenges, and its opportunities, especially construction-focused firms with complex financial structures.

“I was looking for a banker who knew and understood construction. When a fellow subcontractor recommended BaseRock after having a great experience with them, he connected us.

BaseRock had a deep knowledge of our business, understood how our somewhat complex and unique financials worked, and had a deep pool of serious, sophisticated buyers.”

– Jim Bisson, President & Chief Executive Officer of PEC  

BaseRock took the time to understand what mattered most to PEC – culture, control, growth, and diversification – and leveraged its deep industry expertise to identify and secure the right investment partner.

The Outcome: A Stronger Future for PEC

The investment from Alaris Equity Partners provides PEC with the resources to accelerate its expansion while maintaining its strong company culture and reputation for excellence. By working with BaseRock, PEC was able to navigate the complexities of the transaction with confidence, securing a future that supports both its team and long-term vision.

About BaseRock Partners

BaseRock Partners is an investment bank built to serve the engineering and construction industry. BaseRock advises clients using a team-oriented approach that combines decades of industry expertise, deep industry relationships, and unique transaction capabilities specifically designed to meet the needs of engineering and construction companies.

Contact BaseRock Partners

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Luke Smith

Managing Director
720.846.0004

Email Luke
BaseRock Partners Advises Key Construction On Its Sale To An ESOP

BaseRock Partners Advises Key Construction On Its Sale To An ESOP

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Denver, CO (February 20, 2025) – BaseRock Partners is pleased to announce the sale of Key Construction, an ENR Top 400 Contractor, to an employee stock ownership plan (ESOP). BaseRock Partners (“BaseRock”) acted as the exclusive financial advisor to Key Construction in this transaction. Founded in 1978 by brothers Ken and Dave Wells, Key Construction has grown to operate in nearly 40 states, with offices in Kansas, Oklahoma, and Texas.  

“Choosing the ESOP path as part of our succession plan was an obvious choice for Key Construction. From the beginning, we knew that our dedicated employees were rightful owners given their role in building Key Construction to the company that it is today,” said Dave Wells, President of Key Construction. “As owners, we were honored to pass the ownership torch to employees and work to help them achieve their long-term retirement goals.” 

Wells continued, “The team at BaseRock are at the top of their class! Their professionalism and expertise were instrumental in our successful ESOP transition.

The BaseRock team took time to explain each phase of the process in a clear and understandable way. I truly believe without them on our team we wouldn’t have realized the exceptional transaction that resulted. We would not hesitate to recommend BaseRock to any owners considering an ESOP or any other type of sale transaction.” 

The establishment of the ESOP underscores Key Construction’s commitment to its workforce, recognizing employees as its most valuable asset. This move is anticipated to enhance employee engagement and drive the company’s future success. 

 

About BaseRock Partners

BaseRock Partners is an investment bank built to serve the engineering and construction industry. BaseRock advises clients using a team-oriented approach that combines decades of industry expertise, deep industry relationships, and unique transaction capabilities specifically designed to meet the needs of engineering and construction companies.

 

BaseRock Partners Contact

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Matthew Drake

Partner & Co-Founder
312.882.7649

Email Matt
American Structural Concrete has sold to an employee stock ownership plan

BaseRock Partners Advises American Structural Concrete On Its Sale To An ESOP

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Denver, CO (January 31, 2025) — BaseRock Partners is pleased to announce the sale of American Structural Concrete (“ASC”) to an Employee Stock Ownership Plan (ESOP). BaseRock Partners (“BaseRock”) served as the exclusive financial advisor to ASC throughout the transaction process. 

Founded over 30 years ago, American Structural Concrete has established itself as a leader in structural concrete solutions across the Southern United States. The company has contributed to some of the region’s most iconic projects, including the Faena Art Center in Miami, FL, and SunTrust Park in Atlanta, GA. ASC’s expertise spans Traditional Form and Turnkey Frame, Hybrid Parking Deck, Tilt-Up, Industrial, and Precast structural solutions. 

“At American Structural Concrete, we spent several years developing a sustainable business including being certain of the management’s capabilities in the event something happened to the owners. Included in our definition of a sustainable business was the concept of the company’s culture,” said Brack Maggard, President & Partner of ASC.

“After a considerable amount of thought given to the various other potential buyers, it became obvious that selling to the employees was the only way forward in order to maintain the Company’s culture which is integral to the success of the Company.” 

Chris Alexander, COO & Partner of ASC, shared,

“Selling to an ESOP is not like a typical M&A transaction. Through their significant experience, BaseRock Partners navigated the requirements related to an ESOP transaction with ease. Not only did they (very patiently) explain the vast differences between an M&A transaction and an ESOP, they helped crystalize our thoughts regarding other potential buyers.”

“As a group, BaseRock was not only highly professional and knowledgeable, they were fun to work with.  It left you feeling like you made a bunch of new friends. I would not hesitate to recommend BaseRock Partners for any type of sale transaction. Their advice was invaluable.”  

The ESOP transition solidifies ASC’s commitment to its workforce and positions the company for long-term stability and growth under the stewardship of its skilled team. This employee ownership model ensures the company’s values and mission remain intact while rewarding employees for their dedication and contributions. 

 

BaseRock Partners Contact

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Matthew Drake

Partner & Co-Founder
312.882.7649

Email Matt

BaseRock Partners Advises New England Finish Systems On Its Sale To An ESOP

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Denver, CO (January 15, 2025) – BaseRock Partners announces the sale of New England Finish Systems to an Employee Stock Ownership Plan (ESOP). BaseRock Partners (“BaseRock”) served as the exclusive financial advisor to New England Finish Systems (“NEFS”). 

Founded in 1985, NEFS has grown into one of the largest specialty contractors in New England. Known for its quality craftsmanship and adherence to strict deadlines, NEFS is a trusted partner in the specialty contracting industry. With over 300 carpenters, NEFS serves a diverse range of projects, including high-end tenant fit-outs, biopharmaceutical lab spaces, and ground-up residential high-rises in Boston, Massachusetts. 

“I am so proud of the company we’ve built together, the quality of our work, and commitment to the projects we have always delivered,” said Jon Marquis, owner of NEFS.

“BaseRock worked closely with us to evaluate the best transaction options and provided valuable guidance and expertise throughout the complex ESOP process. Thanks to their extensive experience in the construction industry, we achieved a transaction that significantly benefits our employees and positions our company for long-term success.” 

NEFS’s transition to employee ownership underscores its commitment to its workforce as its most important asset. This ESOP ensures the company’s stability and continued growth under the leadership of its skilled and loyal team. 

About BaseRock Partners

BaseRock Partners is an investment bank built to serve the engineering and construction industry. BaseRock advises clients using a team-oriented approach that combines decades of industry expertise, deep industry relationships, and unique transaction capabilities specifically designed to meet the needs of engineering and construction companies.

 

BaseRock Partners Contacts

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Matthew Drake

Partner & Co-Founder
312.882.7649

Email Matt
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John Steinegger

Managing Director
720.853.4235

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BaseRock Partners Advises Hartwig Mechanical, Inc. On Its Sale To Crete United, a Portfolio Company of Ridgemont Equity Partners

BaseRock Partners Advises Hartwig Mechanical, Inc. On Its Sale To Crete United

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Denver, CO (November 20, 2024) – BaseRock Partners announces the sale of Hartwig Mechanical, Inc. (“Hartwig”) to Crete United, a portfolio company of Ridgemont Equity Partners. BaseRock Partners (“BaseRock”) acted as the exclusive financial advisor to Hartwig in this transaction.

Founded in 1958 by James H. Hartwig, Hartwig Mechanical, Inc. is a premier, full-service commercial and industrial mechanical contractor, serving the Northern Illinois, the North Side of Chicago, and Southern Wisconsin areas. This partnership also enables Crete to expand its geographical footprint and strengthen its presence in the Midwest. 

“The BaseRock team was instrumental in our realizing an attractive outcome for Hartwig,” said Chadd Hartwig, CEO of Hartwig.

“BaseRock did a terrific job of communicating our story, their process generated significant buyer interest, and their industry expertise and experience was instrumental in managing the transaction. We are pleased to have realized such a successful outcome.” 

About BaseRock Partners

BaseRock Partners is an investment bank built to serve the engineering and construction industry. BaseRock advises clients using a team-oriented approach that combines decades of industry expertise, deep industry relationships, and unique transaction capabilities specifically designed to meet the needs of engineering and construction companies.

BaseRock Partners Contact

matt-drake

Matthew Drake
Partner & Co-Founder
Email Matthew
312.882.7649

BaseRock Partners Advises SunWest Builders On Its Sale To An ESOP

BaseRock Partners Advises SunWest Builders On Its Sale To An ESOP

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Denver, CO (November 5, 2024) – BaseRock Partners announces the successful sale of SunWest Builders to an Employee Stock Ownership Plan (ESOP). BaseRock Partners (“BaseRock”) served as the exclusive financial advisor to SunWest Builders. 

SunWest Builders, founded in 1989 and headquartered in Oregon, has been a trusted name in Central Oregon’s construction industry for over 35 years. Known for delivering high-quality projects, from small-scale remodels to multi-million-dollar campus expansions, SunWest Builders consistently meets the highest standards of craftsmanship and customer service. The company’s stability and success are built on strong client relationships, with recommendations and referrals serving as a testament to its long-standing commitment to client satisfaction.

Under the leadership of President and owner Steve Buettner, who has been active in the region’s construction sector since the early 1980s, the company has earned a reputation for delivering high-quality, durable projects across a wide range of sizes and types.

Reflecting on this new chapter, Buettner shared, “I have always believed in the talent, dedication, and heart of our team. Transitioning to an ESOP reflects my confidence in our people and honors the collective effort that has driven our success. I couldn’t envision a better legacy than empowering our employees to shape the future of SunWest Builders.” Buettner shared,

“BaseRock Partners came highly recommended to us, and they lived up to their reputation as leaders in construction company ESOP formations. Their expertise and guidance were crucial as we navigated the complexities of transitioning to an ESOP.

With their insightful support and step-by-step leadership, BaseRock proved to be the ideal partner during this transformative period for SunWest Builders.”

 

About BaseRock Partners

BaseRock Partners is an investment bank built to serve the engineering and construction industry. BaseRock advises clients using a team-oriented approach that combines decades of industry expertise, deep industry relationships, and unique transaction capabilities specifically designed to meet the needs of engineering and construction companies.

BaseRock Partners Contact

matt-drake

Matthew Drake
Partner & Co-Founder
Email Matthew
312.882.7649

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