Organizations in Texas are finally showing signs of moving beyond the fiscal challenges of the recession, and are making significant investments in future growth. As a result, the amount of mergers and acquisitions taking place in the Lone star state has reached its highest level in the last decade, according to The Dallas Morning News.
At least 255 mergers, acquisitions, joint ventures and divestitures have been announced by Texas-based companies so far this year, with experts expecting greater activity in the coming months. Roughly 75 percent of the total number of public deals involve energy companies.
The value of the transactions is estimated at $45.5 billion, according to Mergermarket. Not included in this figure are the recent transactions of three significant players in the energy industry: American Energy Partners, Chesapeake Energy and Devon Energy.
Robin Fredrickson, an oil and gas partner at Latham & Watkins in Houston, talked to the Houston Chronicle about how the surge in activity is affecting parts of the industry.
"Last year, we saw deal-making among the upstream E&P companies slow down and the midstream pipeline and oil services companies significantly increase," Fredrickson told the source. "The midstream companies are still dealing, and the upstream companies are back, too."
With credit markets expanding their minimum standards and financing becoming readily available, many organizations are looking to capitalize on the recent energy boom taking place in the state.
With the flurry of activity, many organizations will be faced with tough decisions on how their new assets can best be utilized. Seeking change management consulting during this time can ensure that organizations undergoing change in structure or process practice the most effective organizational change management strategies.
Xbig6 has extensive experience in oil and gas strategy consulting, and can help organizations to make the most of their recent merger or acquisition.