Over the course of our twenty years of involvement in the industry, we have written numerous articles and given many presentations on the subject of mergers and acquisitions (M&A) in the industrial gas industry. While the thought of continued industry consolidation is not a pleasant subject for many, it is a trend that will likely continue and thus should not be ignored.
When discussing the factors that drive consolidation, we often cite factors such as changing industry dynamics and the relative health or weakness of the economy. When we look ahead over the next 12 to 18 months, however, we think that one factor, more than any other, will be the primary driver of M&A activity. That factor is business owner demographics.
In this first installment of a two-part series, we describe some of the demographic trends we are observing that lead us to the conclusion that business owner demographics will drive consolidation over the next 12 to 18 months. In the second installment, we will describe some of the different options available to business owners and families when faced with the challenges posed by business owner demographics.
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