By George Barsom, JD, CM&AA®, CAIA® • Last updated: May 9, 2026 Updated for founders, operators, acquirers, and referral partners evaluating what M&A buyers look for in water and wastewater engineering firms. This guide focuses on buyer underwriting, diligence evidence, valuation support, and deal-structure implications across service mix, backlog quality, client concentration, margins, contract risk, working capital,…
A practical MEP underwriting guide for founders, acquirers, and advisors on the specific criteria buyers evaluate in diligence—client quality, backlog, licensed staff, leadership depth, project mix, end-market exposure, and margin durability—and how those findings affect valuation and deal terms.
Project concentration in an engineering firm is not just an operating issue. It affects buyer confidence in backlog conversion, EBITDA durability, closing certainty, and the purchase-price mechanics buyers use to protect against client, project, and contract-specific risk.