Management Consulting > Business Issues > M&A Due Diligence

Management Consulting: M&A: Commercial and Technical Due Diligence Services for the
Chemical & Materials and Energy Industries


LOOKING TO DRIVE GROWTH THROUGH STRATEGIC REPOSITIONING, DIVESTITURES, ACQUISITIONS, JOINT VENTURES OR ALLIANCES?

NOW IS THE RIGHT TIME!

WHY?

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.

Due Diligence 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.

THE CHALLENGE

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:

  • 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
In addition, we regularly accompany our clients to management presentations and plant tours to provide real time support, advice and guidance.

OTHER M&A SERVICES:

  • M&A driven growth strategies
  • Valuations;
  • 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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Kline Due Diligence
Kline’s coverage of the specialty segments of the global specialty chemicals and energy industries is broad and its knowledge of the players deep:

Chemicals & Materials

Download Specialty Chemicals Evolution and Challenges >>

TECHNICAL SPECIALTIES
Antioxidants
Biocides
Catalysts
Chelants
Corrosion Inhibitors
Dyes & organic pigments
Elastomers
Enzymes (industrial)
Flame retardants
Foundry chemicals
Gasoline additives
Ion-exchange resins
Laboratory Chemicals
Mining chemicals
Pigments, inorganic
Plastics additives
Rubber processing chemicals
Specialty polymers
Thickeners
UV absorbers

KSF: Company's skill in process and sythesis know-how

FORMULATED SPECIALTIES
Adhesives
Agricultural chemicals
Coal & fuel additives
Construction chemicals
Cosmetic additives
Defoamers
Diagnostic aids
Electronic chemicals
Flavors & fragrances
Food additives
Industrial & institutional cleaners
Industrial coatings
Lubricant & functional fluid additives
Lubricant & functional fluids
Metal plating & finishing chemicals
Oil-field chemicals
Paint additives
Paper additives
Photographic chemicals
Printing chemicals
Printing inks
Refinery & pipeline chemicals
Sealants
Specialty surfactants
Textile specialties
Water management chemicals

KSF: Company's applications knowledge and skill

Energy

Download Lubricants Industry: Future M&A Trends >>

Lubricants
Petroleum specialties
Lubricant basestocks
Lube and Fuel Additives
Fuels
Power
Gas incl Gas-To-Liquids
Metalworking fluids
Waxes
Oil refining
Asphalt
Natural gas and NGLs
New energy sources

Contact:

Eric Vogelsberg
Chemicals & Materials
Ian Moncrieff
Energy
More experts >>