Bob Girton: SOCMA’S Specialty & Custom Chemicals Show 2022
SOCMA Specialty & Custom Chemicals Panel
Bob Girton joined John R. Zuppo III, Executive Vice President at Synalloy Chemicals (former CEO of DanChem under Edgewater’s ownership), and Kevin Yttre, President and Managing Director at Grace Matthews, a chemical focused investment bank, on a panel at SOCMA‘s Specialty & Custom Chemicals Show to discuss current market dynamics impacting privately held chemicals businesses. Industry highlights from this panel are below:
- Greater efficiency, contract terms are becoming more standardized, and establishing an in-depth personal connection and trust is more challenging in virtual due diligence environments.
- While M&A valuations are likely to remain elevated due to the amount of available capital from private equity and strategic acquirers, the number of serious acquirers in each offering has decreased due to more intentionality from acquirers.
- The valuation spread between strategic and private equity acquirers is eroding, but strategics are moving faster vs past norms.
- There is likely to be more M&A activity in the second half of 2022 and into 2023 as more businesses sustain their recent successes.