Consolidation--Moguls of M&A

The size varies with the application—digital companies being less than $5 million, while traditional commercial offset firms tend to be between $5 million and $40 million.

PI: What payment options do you use?

Tevis: Our purchase price is driven off an EBITDA multiple. The owner is paid in cash and then we require him/her to roll over anywhere from 10 percent to 20 percent of the purchase price back into PAA stock. This links owners to the company for the long haul and keeps their valuable team in place to drive shareholder value.