houston-mergers-and-acquisitions-advisors-oil-and-gas-case-study With revenues of $15 million and EBITDA of $4 million, the owner of a rapidly growing oil and gas services company was open to selling 100 percent of business to a strategic buyer or bringing on a financial partner to provide a liquidity event and foster and support growth.

Challenges

  • Inconsistency in earnings
  • Understanding marketing dynamics, including market size and potential buyers
  • Valuing fast-growing business in a changing industry
  • Increasing regulatory environment

Value Drivers

  • Proprietary process and niche products
  • Market dominance and 170 master service agreements
  • Green solutions to meet increasing regulatory demands

Our Approach

  • Identify strategic players in oilfield services industry, securing an all-cash offer
  • Target financial buyers with appreciation for “recycling” business models

Results – First Bite

  • 12 indications of interest and 8 management meetings
  • Secured all-cash deal from multi-billion dollar strategic buyer
  • Opted for earnout at just under one-third of consideration on future numbers, leaving seller in a better position than the all-cash deal

Results – Second Bite

  • 2.5 years later, the seller enjoyed a second “bite of the apple” almost as big as the first, being paid nearly as much for his 15 percent retained interest as the first 85 percent sold
Securities offered through DCF, LLC. Member FINRA/SIPC. Doeren Mayhew is an independent firm affiliated with Moore Stephens International Limited.