Situation
Melvin L. Davis Oil Company, Inc. (“Davis” or “the Company”), a third-generation family business that was founded in 1956, was a premier fuel, food, and convenience retailer in South-Central Virginia, with two truck stops, two traditional c-store locations, and multiple quick service restaurants.

Matrix’s relationship with Davis first began in 2009, and over the following years, Matrix advised the Company on numerous matters.

In the summer of 2021, the existing shareholders decided it was time to sell the Company and diversify their wealth.

Objective
To customize, execute, and complete a confidential sale process that would allow Davis’s shareholders to realize maximum after-tax value upon the sale of the Company.

Solution
Matrix provided merger and acquisition advisory services to Davis, which included valuation advisory, marketing of the business through a confidential, structured sale process, and negotiation of the transaction.

Matrix assisted Davis and its tax advisors in understanding various corporate matters and the tax implications, particularly regarding the tax uncertainty that existed at that time, of different transaction and valuation scenarios.

Multiple competitive offers were received, and Petroleum Marketing Group (“PMG”) was ultimately selected as the acquirer.

Matrix assisted in the negotiation of the purchase agreement and transition services agreement and coordinated the due diligence and closing process.

The transaction with PMG closed in late December 2021.