NV5 Global Inc (NASDAQ:NVEE), a U.S.-based engineering consulting firm, is exploring a potential sale, according to a Reuters report, which cited people familiar with the matter. Following the news, shares surged more than 15% intra-day today.
According to the sources, the company is currently in the initial stages of the sale process and is collaborating with advisors to assess the financial viability of a potential deal. Requests for comments from NV5 representatives have gone unanswered.
NV5 offers infrastructure engineering and building inspection services to various levels of government, as well as the private sector. While the majority of their work revolves around public facilities such as hospitals, schools, and airports, NV5 also operates a real estate transaction services division, which provides surveys and assessments for commercial properties. However, this exposure to the commercial real estate sector has negatively impacted NV5's business and stock price.
In February, CEO Dickerson Wright acknowledged that NV5 would have achieved over 11% gross revenue growth in 2022 if not for the downturn in their real estate transactions business caused by high-interest rates. The company's municipal services division has also been adversely affected.