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 is pleased to welcome Andrew Keller to the London office as a Director. Andrew will oversee the technology market coverage for U.K. and EMEA. Click to learn more.
Marissa Licursi, Senior Manager at Stax, has recently been honored by Consulting Magazine as one of 2024's Rising Stars of the Profession for her Excellence in Client Service. Read more.
In this three part series, Stax experts Athan Siah and Harry Stuart dive into customer closeness and how investors can develop insight into participant objectives when assessing B2B event organizers. Read more.
A diversifying U.S. population and consumer preferences have spurred the growth of international foods in the U.S. market. Stax Associate Director Shoaa Ansari highlights changing trends and demand in the market. Learn more.
Stax experts Marc Malott and Athul Ravunniarath share Stax's experience in evaluating clients AI integration efforts, as well as several key areas SaaS companies can benefit from AI. Learn more.
The increasing number of EVs, alongside tech advancements and government programs, has led to a surge in popularity for EVs with drivers (and investors). Click to learn more.