Meet NV5 Global: A talk with CEO Dickerson Wright
In an exclusive interview with The Fly, NV5 Global (NVEE) CEO Dickerson Wright talked about the company, its M&A pipeline, the structure engineering space and much more. Here are some of the highlights: M&A PIPELINE: Just a few days after Seaport Global analyst Ryan Cassil upgraded NV5 Global to Buy saying the company's M&A pipeline remains more robust than ever before, CEO Wright acknowledged that the company is "very active" on that front. "We have many non-disclosure agreements signed," he added, noting that NV5 has done 18 acquisitions since going public in 2013. GROWING COMPANY: Wright has reiterated the company's revenue guidance of $230M-$250M if no additional acquisition is made until the end of the year, but noted that NV5 plans to enter 2017 with a budget of $300M. More important than "how big" the company can be, Wright highlighted that its main goal is to keep "the organization flat or vertical." The CEO believes NV5 can reach at least $1B in revenue without needing to change its organizational structure or approach to clients. FRAGMENTED INDUSTRY: With over 145,000 engineering firms in the U.S., Wright sees the industry as "extremely fragmented." Nonetheless, he believes NV5 is in "a very good space," where it does not have to create a market because it already exists. The structure engineering space is not driven by economic cycles, he added, with macroeconomics "in favor of anybody who's an engineer in the infrastructure space" as the population grows and given the "tremendous" demand on finite resources. FIVE VERTICALS: NV5 concentrates in five key areas, namely construction quality assurance, infrastructure, program management, energy and environmental, which Wright sees as "more profitable than the typical engineering space" and able to grow organically. According to the CEO, the company seeks to be a "value-add consultant," fighting the commoditization of its business. "TRUE INTEGRATOR": While some may see NV5 as "just a financial rollup," Wright pointed out that the company is "truly an integrator." According to the executive, NV5 looks to add value with every acquisition and will not buy a company unless the target also believes it is of value for them to be part of NV5. "Meet the Company" is The Fly's recurring series of exclusive short interviews with Executive Officers to offer a deeper look inside the company. Fly subscribers will have access to full details of this interview later today.