Mergers&Acquisitions: Infrastructure Investment Soars as Legislation Looms

O’Melveny partners Liz Dubeck, Denise Raytis, and Eric Richards spoke with Mergers&Acquisitions about the companies poised to capitalize on future infrastructure spending, no matter how large or small the final US government spending package. 

It’s not only engineering and construction firms that stand to see new business from an increase in infrastructure spending. Richards pointed to the plethora of opportunities in technology, from “[c]ompanies that develop equipment or software that relate to the use of infrastructure–think about an asset like a toll road” to “those that have developed sophisticated software to manage traffic flow more efficiently, price the use of the asset more efficiently for cars and other users.”

As the infrastructure market grows, so, too, does the potential for M&A. “As infrastructure money pours into certain sectors, there’s room for private sector companies to consolidate around providing those services: providing [environmentally] clean operations, construction, development, or services,” Dubeck commented. “In aviation for instance, companies that provide cargo services or ground handling will have more opportunities, which could create opportunities for M&A.”

Infrastructure investment is coming from the private sector even if public funding fizzles. “Whether or not the [infrastructure] plan as it comes out includes funding and initiatives for educational infrastructure, for example, the major universities are going to make those investments regardless, so the need is real. Investment is needed,” Raytis told the publication. 

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