Petrogram - Spring 2010 - (Page 18)
Out & About THE INDUSTRY Financing and M&A Prognostications for 2010 pristine borrowers were met with a cumulative yawn. Unfortunately, we enter the New Year with this same lackadaisical condition. The retail petroleum sector is probably the safest place to invest these days, given the strength of our real estate locations and solid business fundamentals. The problem is that commercial ﬁnance in general is highly suspect. Banks are simply having a hard time getting comfortable with all commercial lending. It is estimated that over the next two years, over $800 billion in maturing commercial debt will come due. There is real fear that this could push the economy back into recession. Declining real estate valuations and suspect appraisals are also causing heartburn for fear that banks will end up being upside down on various deals. Loan pricing is another issue that is contributing to the overall mess. Lenders simply don’t know how to price a loan, as there is so much risk and uncertainty in the market. Thus, on ﬁnancing front for 2010, it is imperative that we continually educate Mark Radosevich T ime really flies during periods of economic and political turmoil. It seems like just yesterday that I was writing my prognostications for 2009, and here I am again venturing another guess as to where the petro financing and mergers & acquisition winds will blow in 2010. I began compiling my thoughts for this article while relaxing by our holiday bonﬁre here at the farm. Over the years I have always enjoyed the warmth of an open ﬁre, but now that a bunch of misguided climate change geeks control our government, I take special pleasure in really stoking this two-week-old blaze. Spectacularly expanding our carbon footprint is our mission this holiday season; family fun that sure beats the kids sitting in front of the tube or playing mindless video games. One natural resource that we have in abundant supply around here is a couple hundred acres of fallen trees and branches, just the stuﬀ to ensure that our protest-bonﬁre has the potential to oﬀend any and all Kool-Aid drinking zealots of the global warming religion. But enough of this fun stuﬀ (I could go on for pages bashing the liberal dimwits in Washington) – here’s my best guess as to what you can expect in 2010. On the ﬁnancing front, it’s safe to say that 2009 was a truly crappy year indeed. The TARP program bailed out the banks but was so poorly designed that there was nothing to compel them to lend. Even the most pristine low leverage deals with | Spring 2010 18 | Petrogram www.fpma.org
Table of Contents for the Digital Edition of Petrogram - Spring 2010
Petrogram - Spring 2010
A Celebration of the Petrogram’s 50th Anniversary
How to Stage a Great Grand Opening
FPMA Efforts to Improve the Cleanup Program
Out & About the Industry
E-10 and Single-Wall Fiberglass Tanks
Are You Ready for PCI Compliance?
Crind and Bear It
Index of Advertisers/Advertiser.com
Petrogram - Spring 2010
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