Companies rethinking their acquisition strategies

On how M&A activity did not slow down this past year: “It’s almost like all of the challenges crystallized … and many folks said, ‘Hey, acquisitions is the only option that we have to offset some of these rising expenses.’ So I think that’s why you saw new entrants into this space that have never even gotten into growth through acquisition at all.”

On younger generations taking over businesses: “We are in the middle of the greatest transfer of wealth in the history of humankind. And that’s not hyperbole. Demographics are going to drive a lot of this activity, and I think the industry-specific factors are going to compound that activity just based on the fact that in a low-margin industry, you have to increase capabilities in whatever you can. There are only so many pennies you can squeeze out of a dollar.”

On what asset-light companies are looking for: “Very specific niche expertise is going to be a huge characteristic for 2023. … A good profile for this was the deal we did with Kenan Advantage Group and their first foray into brokerage space. What did they want? They wanted a proven expert, which was American PetroLog. This is an excellent example and predictive of what we will see from more folks.”