Share
THE SITUATION
- Stax was hired by a PE Client to assess its investment consideration in a firm specializing in chemicals, lubricants and packaging solutions for the Oil & Gas industry.
- As part of a broader diligence, we sought to inform our Client on the positioning and growth opportunity of the Target within the Canadian Oil & Gas (O&G) industry and evaluate market dynamics and growth outlook.
THE ASSIGNMENT
- Leveraged primary research across the Target’s key end-markets and regions along with an in-depth analysis of secondary research and company data to compile a comprehensive fact base.
- Analyzed macro trends and demand drivers, prices, Target revenue, and production particulars and provided insight into the Target’s positioning and growth opportunity within Oil & Gas.
THE BENEFITS
- Stax concluded a positive outlook for the Target in the Canadian O&G sector and presented the client with several insights to validate their investment consideration.
THE FINDING
- We found that while the Canadian O&G industry was historically more stable than the US, recent price drops and macro economic instability had restricted O&G production to primarily large scale producers within Western Canada.
- While market outlook uncertainty may have caused a slight dip in the Target’s performance, the Company’s stable sales growth, and relatively low correlation to O&G turbulence over time, indicated a muted effect to industry trends and price volatility.
- Furthermore, the Target had a defendable market position in regions where Canadian O&G activity was strongest, indicating favorable investment outcomes.
Read More
Stax hosted healthcare-focused PE professionals in NYC to discuss a range of topics including scalable, tech-enabled behavioral health investments amid evolving care models and reimbursement. Click to learn more about what this event covered and how you can learn more.
With AI education now a national priority, Miriam El-Baz highlights in her latest article how investor focus is shifting to classroom adoption and long-term, responsible impact. Learn more.
Stax congratulates Bow River Capital on the successful sale of Progressive Roofing, provider commercial roofing installation services, to TopBuild. Click here to read more.
Following the release of the NHS 10-Year Plan yesterday, Stax explores what it means for independent sector providers and healthcare investors. Read more.
In this recent Reuters special report, Phil Dunne highlights why automakers struggle to match Chinese carmakers—but still hold key advantages, especially in Europe. Click here to read more.
Senior Managing Director Robert Lytle was featured by Carta in their latest article, discussing the impacts of tariffs on M&A and portfolio companies. Click here to read more.