Nailing the Deal: Exploring the BuildingTech Investment Landscape

This is a sponsored message from KPMG.

Engineering and construction is often labeled as being technologically unfriendly, or risk averse, but we see huge appetite for innovation that can help increase productivity, and profitability of job sites, the utilization and yield of real estate, and the efficiency and sustainability of building operations, Unfortunately, the on-the-ground realities of a job site and building operations, and the regulations surrounding them, are often underestimated by startup pitch decks and glossy sales materials.

As a result, the broadly defined “BuildingTech” category (see figure 1 in report linked below) houses hundreds of businesses with carrying business models (from capital-intensive modular building factories, to virtual to-do lists, and everything in between), most of which provide the narrow point solutions for a small set of use cases.

The pandemic, construction labor shortages, and improved technologies (such as 5G, edge computing, and artificial intelligence) have all been heralded as reasons for BuildingTech solutions to finally gain widespread adoption. However, most of these companies struggle to scale (with the exception of a few sizeable players in the construction project management and asset management spaces who are now eyeing expansions into adjacent verticals).

How should investors – both private equity and strategic – assess and support the success of their BuildingTech investments? In the report linked below KPMG presents a framework to organize the building technology landscape, an overview of investment patterns to date, and some insights from our Mergers and Acquisitions (M&A) advisory teams on what makes for successful BuildingTech M&A.

Read the Full Paper Here