|LOOKING TO DRIVE GROWTH THROUGH STRATEGIC REPOSITIONING, DIVESTITURES, ACQUISITIONS,
JOINT VENTURES OR ALLIANCES?
NOW IS THE RIGHT TIME!
2013 is already proving to be a significant year for M&A activity in the chemicals & materials and energy industries due to many companies seeking to drive growth and enhance performance through strategic repositioning, divestitures, acquisitions, joint ventures and alliances.
Over a short period of time in July 2013, several chemical majors – Dow Chemical, DuPont, and Ashland – each announced that they were considering the divestment of business units, potentially putting a significant bloc of assets on the market. Several financial sponsors and strategics also announced planned/completed exits or potential divestitures, including American Securities, BASF, and Rockwood. On the other hand, in energy, Gulf Oil, Phillips 66, and others have announced their intentions to grow their specialties businesses, with Phillips 66’s focus on growing its midstream and chemicals segments.
For a large developed market like the United States, about 20% to -25% of segments are above average in both growth and indicative profitability dimensions
We expect this will be an increasingly attractive and favorable environment.
||On the sell-side, investments must be found for the vast amounts of capital residing on the balance sheets of strategics or in funds managed by PE firms to improve financial performance or to generate a return for LPS respectively, creating a very favorable environment in which to divest attractive or even moderately attractive assets. At the same time, PE fundraising continues unabated, with many funds closing at or above their caps.
||On the buy side, there will be an increasing number of attractive or even moderately attractive assets coming to market.
For most companies, developing an accurate and objective understanding of a potential acquisition candidate or partner, its business, the environment in which it competes and what the future will likely hold is one of the most critical elements in their evaluation.
Finding an advisor that can deliver that understanding based on deep industry knowledge, with an unbiased, pragmatic view can be an equally significant challenge.
WHY KLINE & COMPANY?
For most companies evaluating an investment in chemicals & materials, and energy, Kline & Company is the go-to-advisor for commercial and technical due diligence due to the firm’s unique positioning.
As the leading and longest tenured consultancy in specialties, Kline has spent more than 50 years publishing syndicated analyses of the value added segments in the global chemicals and materials, and energy industries. Over the same time, clients have commissioned thousands of confidential analyses of these markets and the players therein.
Complementing the firm’s in-depth understanding of global markets and players, the firm’s principals have collectively advised on hundreds of potential and closed transactions. We deliver effective, objective and insightful analyses built on deep and broad industry expertise, analytical and management consulting capabilities, and a collaborative approach.
Together Kline’s industry knowledge and functional skills allow us to provide our clients with detailed information and insights on:
In addition, we regularly accompany our clients to management presentations and plant tours to provide real time support, advice and guidance.
- Market size, segments, trends drivers and growth rates
- Competitive position and environment; players ,market share, manufacturing process and costs, KSFs, SWOT analyses
- Threats, opportunities and the likely sustainability of the company, its business and performance
- Critique seller’s marketing collateral
- Review and critique contracts
- Identify and evaluate the implications of potential red flags
OTHER M&A SERVICES:
- M&A driven growth strategies
- IPO and IM development
- Deal origination and introductions to management and/or ownership
- Identification and vetting of potential targets and partners for joint ventures and alliances
- Industry characterization and attractiveness screening
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Change and Uncertainty in Lubricants Industry
In the global lubricants industry, 2012 can be defined as a year of change as well as a year of continued uncertainty. In the past year, continuing financial turmoil – notably in the Euro Zone and the US, but not just confined to these regions.
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