THE PORTFOLIO MID-MARKET TRENDS // Richard A. Martin, Jr., Senior Director, Merrill Corporation
MID-MARKET TRENDS
SOUND DECISIONS
TAP BUTTONS TO NAVIGATE COLUMNS
Activist Shareholders
Richard A. Martin, Jr.
While the overall M&A sector has ex-
Activist shareholders have had a big influ-
perienced a rocky 2016, chemicals show
ence on chemicals deals, working to create
no signs of slowing down. Although
more shareholder value. They are not only
acquiring companies may experience
influencing acquisitions but also divesti-
short-term pressure on their stock, and
tures. According to a report by Deloitte,
imminent job losses are usually unavoid-
“Spinoffs are becoming more prevalent as
able, the longer-term outlook is optimis-
a means to realign portfolios in the global
tic. The American Chemistry Council
chemical industry, as corporate strategy
predicts that U.S. chemical production
continues to drive divestitures of non-core
will continue to expand over the next
or underperforming assets.” Divesting as-
several years, outpacing overall growth
sets is also being used a tax strategy.
of the American economy and driving long-term economic prosperity. In short,
Agriculture’s Down Cycle The decline in U.S. farming income is put-
this is most definitely a sector to watch. For more information on global trends
ting purchasing decisions under scrutiny,
in the chemicals industry, please down-
further reducing potential buyers’ willing-
load the May Monthly Insider from Mer-
ness to pay for certain ag-related products
rill Corporation and Mergermarket. //
and chemicals. In order to remain buoyant, companies are joining forces to help
Richard A. Martin, Jr. is a senior director
provide competitive pricing.
at Merrill Corporation, responsible for Merrill DataSite’s global marketing group. Nearly two decades of marketing experience working and residing in the United States, the United Kingdom and Europe has developed Martin’s understanding of disparate corporate cultures and the global financial industry, evidenced by a successful record of growing businesses.