A conversation with Jim Dillavou & Trevear Thomas |
Thomas, Principal, Deloitte Consulting LLP, M&A Consultative Services, to share their insights on what’s happening in today’s energy M&A marketplace and challenges and opportunities executives will likely face in 2009.
Price volatility for oil & gas continues to have a substantial impact on the industry; leaving executives to figure out what the ‘right price’ really is and how that will impact their long-term strategy. As such, business plans are now being adjusted which is likely to lead to companies disposing of assets or businesses, consequently generating a moderate level of M&A activity.
Murmurs of new energy initiatives from U.S. President Barack Obama’s administration may also boost deal activity; if carbon legislation is implemented – for example – this could see companies purchasing carbon-friendly assets that align with their strategic plan to help reduce their carbon footprint and ultimately, associated costs.
Jim and Trevear also debunked common M&A “myths”, noting “companies that don’t consider M&A during times of distress risk missing out on many of the opportunities that do exist.”
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A conversation with Jim Dillavou & Trevear Thomas