Since the chemical business is at the forefront of scientific advancement, certain distinctive features of this sector need to be taken into account when selling a chemical company. BB Capital, the top private market M&A advisory firm in Saudi Arabia, is aware that selling a company is a significant choice. A committed business owner aims to sell their company to a qualified buyer who can carry on the company’s legacy in addition to maximizing the amount of money they can get from the sale.

With a wealth of deal-negotiating experience, BB Capital has worked on valuation and M&A consulting mandates in the chemical manufacturing sector. Our knowledgeable advisory staff will help your company through the whole sell-side M&A process.

Capital intensity: For a variety of reasons, such as product storage, machinery, and lab equipment, this industry is typically capital intensive.

Low/moderate competition and high barrier to entry: Several entry hurdles, such as economies of scale, capital needs, and reliance on pre-existing supplier connections, have successfully decreased the level of rivalry that businesses in this sector must contend with.

Government rules: Because chemical goods are dangerous, all businesses in the chemical sector must abide by government rules.

Dependency on macroeconomic factors: The price of oil and gas, the Saudi effective exchange rate, and the state of the economy as a whole can all have an effect on the financial success of chemical enterprises. While Saudi ryal value determines the competitiveness of Saudi items’ prices, oil and gas prices directly affect profit margins and operational overhead costs. Last but not least, a robust economy fuels consumer demand for household chemical products.

Whether it’s a sale or a valuation, our team can offer resources and experience that are only available at larger companies, together with the individualized attention of our M&A Advisory team. Reach out to one of our advisors by contacting us right now.