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
Financier Worldwide discusses strategy and execution for accelerating value in PE carve-outs with Phil Dunne and Peter Rodrigues-Renon at Stax, including Gerard Nichol at Grant Thornton. Read more.
Investment focus in automotive technology continues to broaden beyond OEMs to the core service ecosystem. Read what Sameer Tejani and Max Massaro see in the market.
Grant Thornton Stax supported SteelEye, a leading trade and communications surveillance and data analytics platform, on its recent merger with FundApps. Read about the deal here.
As data center development shifts toward larger builds, demand for specialized service providers, offering backup power, electrical systems, and cooling infrastructure grows. Learn more.
Grant Thornton Stax Appoints Chen Liu as Partner to Drive Growth in Technology and Education Sectors
Stax, part of the Grant Thornton Advisors LLC multinational platform, has announced the appointment of Chen Liu as Partner. Read more about Chen and his responsibility with the firm.
Many PE-backed education companies struggle with commercial scaling. Miriam El-Baz, & Alex Erines share how to align commercial engines to how district and school leaders buy.