In 2013, over 14% of middle market transactions occurred in the energy sector.
The US oilfield services industry has stabilized, situating itself in a marketplace full of potential and strategy. Balance sheet strength and debt service management became a critical focus across all industries during the recession. Top line organic growth has continued to remain difficult, and input cost pressures are tightening margins, leading companies to shift that focus toward acquisition to increase profitability. While natural gas prices are expected to remain low over the foreseeable future, steadily growing crude oil prices and expanding global demand for fuel should bolster industry profitability. With revenues projected to rise consistently through 2020, and regulation for energy expected to remain stable, M&A activity should continue to be strong.
Peak demand challenges, rising prices, legislative impact, increased use of renewable energy and even the coming age of plug-in vehicles have caused commercial, industrial and institutional organizations to rethink how they manage energy. With commercial and industrial energy use representing 53% of all energy spending in the U.S., energy management systems and their associated cost savings and sustainability opportunities are an increasingly vital ingredient in enterprise cost control and competitive strategies. Over the past 15 years, energy management has become an industry sector in and of itself driving the creation of thousands of companies now coming of age leveraging new, complex technologies and services from building automation to real-time predictive energy analytics.
Blue River interacts with business owners in these high growth sectors every day. We assist corporations and private equity firms in executing complex Energy M&A strategies from strategic partnerships to capital infusion to highly targeted exits to diverse acquisition mandates.