by Janet Tooke, VP Strategy Group
Market volatility, such as low oil prices but attractive downstream retail margins, lower cost to borrow capital and perceived or actual demand erosion can all be reasons for the spike in acquisitions in the fuel retail market. Private equity investors, for example, have been active in seeking out under-valued investment opportunities in the downstream fuel market. Investors are disciplined in their approach, targeting future returns, not just current performance. When it comes time to dig in and understand whether or not a site or network is the correct acquisition for your company, due diligence isn't always enough. A quality acquisition analysis extends far beyond current volume or competitive awareness.