Stax Carried Out and In-Depth Assessment of the Canadian Oil and Gas Industry to Support the Diligence Efforts of a PE Client

Stax Carried Out and In-Depth Assessment of the Canadian Oil and Gas Industry to Support the Diligence Efforts of a PE Client

December 3, 2018
December 3, 2018

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 Recognized Among Consulting Magazine’s Best Firms to Work For
September 17, 2025
For the fourth consecutive year, Stax was recognized by Consulting Magazine as one of the top "Best Firms to Work For"—earning the #2 ranking in our category for 2025. Read more.
The European Wealth Management Software Landscape: ​ A New Era of Opportunity
By Sagar Bansal & Jai Singh September 15, 2025
Sagar Bansal and Jai Singh highlight key growth drivers ®gulatory tailwinds, as well as providing a future outlook on the drivers that are reshaping European wealth software. Read more.
Why Are Private Equity Investors Caring More About DevOps?
By Andrew Keller, Tyler Michaels, & Yiwei Jiang September 11, 2025
DevOps tools enable developers and IT teams to collaborate more effectively, opening up the potential for intriguing ROI. Read why PE investors are becoming more interested in DevOps.
Investing in Healthcare 2025: Stax PE Investor Survey
By Darren Buskirk & Jordan Abrams September 9, 2025
Stax Healthcare vertical has compiled the results of a recent survey, conducted by Stax, highlighting the changing landscape in the Healthcare industry. Read the full report here.
Featured by Reuters: 'It's Europe vs China' as Chinese brands crowd Munich car show
September 8, 2025
Phil Dunne was recently featured amongst several industry experts to weigh in on the growing takeover of Chinese EV manufacturers in Europe. Click here to read the full article.
Featured by Management Consulted: Grant Thornton Acquires Stax
September 5, 2025
Paul Edwards recently sat down with Management Consulted's Jenny Rae to discuss Stax’s growth journey and the positive impact of our partnership with Grant Thornton. Read more.
Show More