The data has been integrated, the process has been automated, and now you would like to intelligently apply this information to grow more meaningful relationships.
Our intelligent future will greatly impact the Energy, Materials, and Financial industries, and as such significantly transforming how these sectors operate. Thinking through this application process, once the data is integrated and the robots are organized, what applications can we use to facilitate the relationship building process, as well as make marketing travel smarter?
The overall energy sector has contracted over the past few years. In fact, M&A deal activity for the Energy sector dropped in 2017 to pre- 2013 lows. Much of this pullback in deal activity stems from the price decline in crude oil due to a surplus in supply; although, the WSJ reported this week that analysts are raising their price forecast due to waning oil production. Whatever the case, the decline has obstructed the sector’s role in the economy. If we’re experiencing the bottom here for energy deals with a rebound around the corner, where should you start looking to grow relationships?
Not terribly surprising, Texas and Alberta are the places to be for energy transactions. However, if you are looking to grow relationships with the unique intermediary professionals that are advising on these transactions, the top five cities may surprise you: Houston, New York, Dallas, Richmond, and Chicago. While it certainly makes sense to visit Texas, you may shelve your passport and that trip to Canada in the near term. Using intelligent applications will help point you in the right direction, quite literally.
Living in a Materials world
Material deal activity, since 2012, has steadily increased year-by-year. Analyzing 2017 activity: 70% of the Materials transaction traded in the Chemicals, Minerals, & Plastics subsector; 22% in the Packaging Products and 8% in the Paper & Related subsectors. Suppose the Paper & Related subsector falls in your wheelhouse, where should you book travel this year to grow relationships in this space? Quickly reviewing the map, and it’s evident that the folks in the Acela-Corridor should be top on your list. But, really analyzing this map, and it’s apparent that the highest volume of unique professionals who advised on multiple Paper & Related deals in 2017 are located in Chicago. What a great source for potential repeat deal flow!
Ah, the financial sector. This sector saw relatively consistent deal activity in 2014, 2016, and 2017; however, there was a slight spike in 2015. This spike at the end of 2015 has been noted for several reasons, including an impending tax change in 2016.
For the overall industry, the New York metropolitan area and California are the most active locations, and the coasts to visit. Looking for sell-side advisors working in the Asset Management & Advisory subsector? Head to New York! Interesting though, if the Insurance subsector is part of your strategy, visit Ohio this year. Both Columbus and Cleveland had the most active advisors, with one go-getter advising on 10 Insurance deals last year!
Intelligent applications can point your travel in the right direction, namely to the Industrial Mid-West. Chicago and Ohio are the key to growing relationships in the Energy, Materials, and Financial sectors. Who knew?
Last week’s deals today
February 19 – February 23, 2018
~70 deals traded!
Deal of the week
In a bulge-bracket energy deal, totaling $1.1B, Sun Capital Partners sold its stake in Acalara Technolgies, LLC (Acalara) last week to Hubbell Inc. Sun Capital original acquired Acalara in 2014 for $130M.
Most active subsectors
- IT: Software & Services
- Industrial: Equipment & Products
- Services: Marketing & Related
- Media: Marketing & Sales Services
- Financial: Services
- Food: Consumable Food Products
- Services: Education
Most active cities
- New York
- San Jose
- Las Vegas
- San Francisco