Willdan Acquires Compass, Deepens Grip on Public Finance Market

ANAHEIM, CA – January 02, 2026 – Willdan Group, Inc. (NASDAQ: WLDN) has finalized its acquisition of Compass Municipal Advisors, LLC, a strategic move that significantly expands its public finance consulting footprint into the Southeastern United States. The deal, completed through Willdan's subsidiary, Willdan Financial Services, absorbs a well-regarded independent advisory firm, signaling a major push to enhance service capabilities and compete more aggressively in the municipal sector. While the financial terms of the transaction were not disclosed, the implications for the competitive landscape and public sector clients are substantial.

A Strategic Push into the Southeast

The acquisition marks a deliberate and calculated expansion for Willdan into a key economic region. Compass Municipal Advisors, headquartered in Columbia, South Carolina, with an office in Lexington, Kentucky, has built a formidable reputation as a leading independent advisor across the Southeast. Before the acquisition, Compass served a diverse portfolio of over 225 municipal entities, including a significant concentration of 77 public school districts, primarily in Kentucky and South Carolina. This established client base provides Willdan with an immediate and deeply rooted presence in a market it was keen to penetrate.

By absorbing Compass, Willdan is not just buying a company; it is acquiring a turnkey operation with a proven track record and extensive local relationships. The Southeast has seen consistent population growth and, consequently, a rising need for infrastructure development and rehabilitation—from schools and utilities to transportation networks. These projects require sophisticated financial planning and debt management, creating a fertile ground for municipal advisory services. Willdan's move preempts the need to build a regional presence from the ground up, a process that can take years of investment and effort. Instead, it gains a team renowned for its regional expertise and a client list that would be the envy of any new market entrant.

Bolstering Public Finance Expertise

Beyond geography, the acquisition is a significant talent and capability upgrade for Willdan Financial Services. Compass brings a team with over a century of combined experience, led by seasoned professionals like Senior Managing Director Brian Nurick and Managing Director Michael George. Their team's background spans government, investment banking, and credit analysis, providing a holistic perspective on public finance challenges. This deep bench of expertise was a core part of Compass's value proposition, allowing it to guide public agencies through complex structured financings, capital planning, and debt issuance with a steady hand.

For municipalities, counties, and school districts, the integration of Compass into Willdan's broader ecosystem could unlock new efficiencies. Willdan is a nationwide provider of a wide array of technical and consulting services, including engineering, electric grid solutions, and sustainability planning. A local government planning a major infrastructure project, for example, could now potentially tap into a single, integrated partner for everything from initial engineering assessments and environmental impact studies to the complex financial modeling and bond issuance required to fund it. This "one-stop-shop" potential is a powerful differentiator. The combination of Willdan's technical prowess with Compass's specialized financial acumen could lead to more cohesive and cost-effective solutions for public sector clients navigating the intricate process of capital improvement.

Consolidation Reshapes the Consulting Landscape

The Willdan-Compass deal is a microcosm of a larger trend sweeping across the professional services industry: consolidation. In recent years, larger, diversified firms have been actively acquiring smaller, specialized boutiques to achieve scale, broaden service lines, and secure competitive advantages. Independent firms like Compass, with its strong regional brand and deep-seated client trust, are prime targets. Their independence and fiduciary duty to clients were key selling points, often leading to excellent outcomes, such as averaging six bids per transaction on bond issues in 2020.

For larger players like Willdan, such acquisitions are a highly efficient method of growth. They can instantly bolt on new revenue streams, specialized knowledge, and geographic reach. "The fragmented nature of the municipal advisory market makes it ripe for consolidation," noted one analyst who covers the professional services sector. "Larger platforms can offer more integrated technology, broader investor networks, and the ability to handle larger, more complex transactions, which puts pressure on smaller, independent shops." This trend suggests that the era of the standalone regional advisor may be giving way to a new landscape dominated by a handful of national powerhouses with deep pockets and a comprehensive suite of services. The challenge for Willdan will be to integrate Compass's team and culture while preserving the client-centric focus that made the smaller firm successful.

Navigating a New Competitive Arena

With Compass under its banner, Willdan Financial Services is now positioned as a more formidable competitor in the Southeastern municipal advisory market. The move places it in more direct competition with other established national and super-regional firms that have long been active in the area. The ability to bundle financial advisory with Willdan's other technical consulting services could give it a unique edge when bidding for large-scale, multi-faceted public works projects.

The combination of Compass's reputation for securing optimal financial outcomes and Willdan's national scale could prove attractive to public officials seeking both specialized advice and the security of a large, publicly-traded partner. The acquisition effectively elevates Willdan's status from a general consultant to a specialized player in the high-stakes world of public finance. As municipalities across the Southeast continue to grapple with funding for critical services and infrastructure, the newly expanded Willdan will be competing to be their advisor of choice. The success of this integration will likely be watched closely by competitors and clients alike, serving as a bellwether for future strategic moves within the industry.