Successful Collaborative M&A Deals

These are two examples of successful collaborative M&A deals we recently completed. The collaborative approach applies to larger transactions; it isn’t feasible to bring this formal level of collaboration to smaller transactions. But with access to industry experts throughout North America, we are able to bring global expertise to smaller transactions on an informal basis.

Wpw—Part Of The “Triple Play”

We collaborated with one of our U.S. associates, closing transactions with three energy services firms on the same day. With three deals, three sets of shareholders, and cross-border considerations, this was a complex deal that required careful negotiation, patience, innovation, and collaboration.

As a result of taking a collaborative approach, U.S. Shale Solutions Inc. of Houston, TX acquired W. Pidhirney Welding Ltd. (WPW) of Leslieville, AB; Culberson Construction, Inc. of Granbury, TX, and J4 Fluid Services, Inc. of Victoria, TX.

As the M&A advisor for WPW, our role involved assessing who would provide the best-in-class expertise. It also involved determining a reasonable target price for the company as well as providing the client with options on how to achieve their goals. We were responsible for managing confidentiality and the communication process on a regular basis, and we worked with the client to populate the online data room.

Our associate’s primary role was to identify strategic buyers outside of Canada and articulate value drivers to prospective buyers. We jointly managed the negotiation process and achieved a successful outcome.

Parkland Pipeline Contractors Ltd.

We also also teamed up in a deal that saw Parkland Pipeline Contractors Ltd. of Olds, AB, sold to Tetra Tech Inc. (NASDAQ: TTEK).

Parkland Pipeline plans, constructs, and maintains pipelines and maintains pipeline oilfield facilities. We invited our U.S. associate to collaborate in meeting the clients’ needs because they had the right market experience as well as skill set.

The seller only wanted us to identify 12 buyers, which we did. Ultimately, three buyers made offers, an ideal situation that gives the seller choice.

Our role involved identifying and securing best-in-class expertise, setting a reasonable target price for the company, and outlining the client’s options for achieving their goals. We were responsible for managing confidentiality and the communication process on a regular basis, and, working with the client, populated the online data room. We also provided the client with suggestions for enhancing the value of the business. These suggestions were implemented and the client was very pleased with them.

Our U.S. associate prepared a CIM that articulated the value drivers and identified strategic buyers. We jointly managed the negotiation process and achieved a successful outcome.