Mercer Capital’s Equipment Dealer Industry Newsletter is a biannual publication providing perspective on valuation issues pertinent to Equipment Dealer professionals. The Equipment Dealer Industry newsletter highlights the following segments: agriculture equipment dealers, construction equipment dealers, and materials equipment dealers. Each issue includes typically includes a macroeconomic overview, industry trends, guideline company pricing, and more.
Excerpting from the discussion:
Equipment dealers grappled with shifting tides in 2014 and an uncertain footing heading into 2015. Oil and gas prices were in a free fall during the back half of the year and agricultural commodity prices remained well below those of the prior several years. Dealers selling into the energy exploration and production markets experienced a chilling effect on demand as did dealers formerly benefitting from the development of upstream and midstream assets used to process and transport energy commodities. Mining concerns continue to lick their wounds from what appears to be a paradigm shift in the use of fossil fuels and declining prices for precious and commodity metals (much as a result of a slowing world economy). Despite widespread adverse water conditions, agricultural volumes and yields remained generally strong with the resulting price compression for crops contributing to a decline in the availability of capital for new equipment.
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