A. Attractive companies today include:
- Companies with strong management teams.
- Companies that have diversified products or services.
- Companies with a well-rounded customer base.
- Companies in the infrastructure space.
- Companies that have patented technology(s), products, services or processes that will provide cost savings.
Q. What is the typical sales cycle for a business in oil field services?
A. This is a difficult question to answer as there are so many factors that determine the timeline for each company and it involves the specific goals of each seller. A few key factors that can affect the time to market are:
- Whether or not your company has audited financials.
- Whether or not a full inventory of equipment is available.
- Whether your company seeking to sell outright or looking for an investment partner to grow the business.
- Transition period.
- This is a process that requires a significant amount of analysis and preparation prior to sale. It is common for our client to engage us 18 months prior to the exit goal.
Q. What documents/information will I need for our first consultation?
A. Our first consultation is always free and conversational in nature. It is our goal to make sure there is a good fit between our company and yours. If you agree to engage our services we will then ask for the following information to help us get started:
- Previous three years’ financials.
- YTD financials, PNL & Balance Sheets.
- Asset or equipment list with Fair Market Values.
Q. What regions do you work in?
A. We represent sellers in North Dakota, Wyoming, Montana, Colorado, Utah and Canada.
Along with the above states we offer consulting services to clients in Oklahoma, New Mexico and Texas; and we work with all domestic and international buyers.
Q. Will you consider selling businesses not connected to the energy sector?
A. Our primary and overriding focus and expertise hones in on the energy sector, most specifically oil field services.
Having said that, we do, however, get involved in selling businesses or product lines outside the energy sector. This activity typically involves helping an energy company sell units or holdings outside its energy core, sales done as preparation for sale of the energy parent or just to streamline its business focus. We also at times work with clients in manufacturing.
Q. I’m seeing private equity capital to support growth, can you help me?
A. Yes. We currently have access to over 28,000 private equity groups and have formed personal relationships with dozens of active investors across the energy sector. We have also cultivated relationships with several Upper Middle Market companies who aggressively invest in the Lower Middle Market.
Q. What are the largest and smallest deals you’ve done to date?
A. Largest: $105 million. Smallest: $1.5 million.
Q. How do you protect confidentiality?
A. We hold confidentiality in highest regard. Our first priority when we list a business is to limit exposure by speaking only with the owner and select employees who have been identified by the owner/employer as essential to the sales process. All documents are held in a secure document room and are available by invitation only. Each potential buyer is vetted — including that the potential buyer fits with both the vision and management of our client/seller and that it has the financial resources to fund any deal. Once vetted, before gaining controlled access to any information about the seller a potential buyer must sign a Company Nondisclosure Agreement. Even the name of the potential seller is withheld until the NDA is signed.
Our strategic marketing system puts our client in the driver’s seat. We personally conduct market research matching the client company with potential strategic buyers. This list is put through several rounds of evaluation and is culled to a short list of potential buyers/investors that are top-tier candidates. If it is later determined that the client and targeted strategic buyer are not a good fit all documentation is returned to PCS and/or verified as destroyed by the receiving company.