Information on the Target

Founded in 1994 and located in Clearwater, Florida, Mason Blau & Associates, Inc. (MBA) is a comprehensive architecture firm that specializes in providing solutions tailored for the healthcare and government infrastructure sectors. The firm boasts a talented team of registered architects who have successfully designed and overseen millions of square feet of aesthetically pleasing and accessible construction across both Florida and the wider United States. With a robust reputation bolstered by thirty years of exemplary client service, MBA has cultivated strong relationships with its clients and maintains a substantial pipeline of future projects. Following the acquisition, the existing leadership team of MBA will continue to play an active role in the business.

Industry Overview in Florida

The architecture, engineering, and consulting (AEC) industry in Florida is rapidly evolving, driven by an increase in public and private investments as well as a growing emphasis on infrastructure improvement. The state's robust population growth and urban development initiatives have amplified the demand for architecture and engineering services. This trend presents significant opportunities for firms within the industry, particularly in the healthcare sector, as aging facilities are updated or replaced to meet modern standards.

Moreover, Florida's unique geographic and demographic characteristics necessitate innovative design solutions that address hurricane preparedness, environmental sustainability, and adaptability to changing population needs. Firms that excel in these areas are particularly well-positioned to thrive in this competitive market. The state has also seen a surge in government-funded projects aimed at enhancing infrastructure, which has bolstered the demand for qualified AEC firms.

Recent data indicates that Florida is one of the top states for construction spending in the U.S., with significant funding allocated for educational and healthcare facilities. The increased focus on public health, particularly following recent global challenges, has spurred investments in healthcare-related infrastructure, further strengthening the sector's growth trajectory.

Overall, the AEC market in Florida presents a fertile landscape for continued expansion, particularly for firms with strong client relationships and a demonstrated track record of successful project execution.

The Rationale Behind the Deal

This acquisition represents a strategic move by Stengel Hill Architecture (SHA) to enhance its presence in the rapidly growing Florida AEC market. By integrating Mason Blau & Associates’ established presence and collaborative approach, SHA aims to bolster its capabilities and expand its service offerings tailored to healthcare and government infrastructure projects. The acquisition is anticipated to foster synergies that will elevate both firms’ operational efficiencies and drive revenue growth through an expanded project pipeline.

Additionally, the deal aligns with Godspeed Capital Management's focus on investing in companies with unique sector expertise and operational insight, positioning SHA to leverage MBA’s long-standing customer relationships and proven performance track record in Florida.

Information About the Investor

Godspeed Capital Management LP is a private equity firm dedicated to the lower middle market, specifically focusing on Defense and Government services, solutions, and technology. The firm partners with dynamic management teams that are looking for a strategic partner with deep operational knowledge and flexible capital to support growth initiatives. Godspeed typically targets companies that generate between $3 million to $30 million in EBITDA, but has the capacity to engage in larger transactions through strategic co-investment opportunities.

Through its investments, Godspeed aims to facilitate control buyouts, buy-and-build strategies, corporate carve-outs, and special situations. The firm's commitment to collaboration and long-term growth initiatives makes it a valuable partner for ambitious firms in the AEC sector, like SHA.

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The acquisition of Mason Blau & Associates by Stengel Hill Architecture appears to be a commendable investment opportunity that could significantly enhance SHA’s market position within the Florida AEC services market. With the burgeoning demand for healthcare and government infrastructure projects, the strategic fit between MBA's existing capabilities and SHA's operational goals presents a strong case for potential growth.

Moreover, MBA's established relationships with clients and reputation for delivering quality projects can lead to immediate synergies within the SHA platform, ultimately driving new business opportunities and expanding the overall service offering. The management team's commitment and experience will likely facilitate a smooth integration process, which is often a critical factor in the success of mergers and acquisitions.

On a broader scale, aligning with a reputable investor like Godspeed Capital, which has a strong focus on AEC services, further solidifies this deal's potential. Godspeed's activity in the market indicates confidence in the growth trajectory of the industry, which bodes well for SHA and MBA.

Overall, this acquisition has the potential to create a leading AEC services platform capable of addressing critical infrastructure needs, ultimately contributing to the long-term sustainability and success of the combined firm.

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