We bring exponentially more buyers to the table. More buyers translates into more offers resulting in the highest prices paid for our clients’ companies.
I wrote this book as a reference guide for business owners that want to understand the M&A process and relevant terminology. I included examples from real transactions to help explain the best practices that I learned on Wall St. that we employ today.
Dean Ferguson, Partner, Ferguson White
Because the KEY to MAXIMIZING VALUE for a selling Company is having MULTIPLE BUYERS at the table, at the same time, to create an auction process to drive up value, and buyers that are SYNERGISTIC ACQUIRERS who are strategically motivated and economically justified to pay the highest value.
ONLY AN OILFIELD INDUSTRY M&A SPECIALIST UNDERSTANDS SYNERGIES BETWEEN BUYERS & SELLERS IN THE COMPLEX OILFIELD INDUSTRY.
Questions Your Oil/Gas M&A Advisor/Broker Must Be Able To Answer
Why is understanding the synergies between a buyer and seller so complex in the oil & gas industry? Because in addition to typical business synergies surrounding products and customers, oil & gas companies have the added complexity of layering on top of these synergies driven by differing basins and geology. Basin and geology differences define synergies between oil & gas companies related to equipment, personnel, customers, MSAs and the like. Only an oil and gas industry specialist understands the interrelationships between basins and geology and how these influence synergies between a buying company and a selling company. To not hire an oil/gas specialist that understands this would be like hiring your local telephone technician to operate your workover rig.
Buyers like to acquire selling companies to diversify their basin exposure. But different basins have different geology, different well economic break even points and as such require different equipment, different people competencies and the like. Your M&A advisor must know what fits and what does not fit and where the synergies are.
Different geologies exist between basins and also within the same basins. A buyer may want to acquire a selling company in a different basin to diversify, but if the geology difference does not lend itself to the buyers services then the acquisition makes no sense. For example certain services like hot oiling, drill pipe hardbanding and even drilling rig technology work well in certain geologies and not at all in others.
Buyers like to acquire selling companies that enable them to share equipment and move equipment from one location to another depending on regional well economics. An acquisition may appear to make sense on many fronts but if required equipment differs between buyer and seller too much an acquisition may no longer make sense.
Many acquisitions depend on the compatibility between management teams and the competencies and expertise of employees. When a buyer looks at acquiring a selling company, they need to ensure the compatibility between all personnel in terms of geology understanding
Are the seller’s customers independents or majors? Does the selling company have MSAs that add value to the buyer? Does the level of infrastructure in the seller’s region influence the synergistic fit with the buyer? Are environmental issues more or less important in closing a deal in the oil/gas industry? At which point in the lifecycle of the well are the buyers’ services versus the sellers’ services and where is the value to to the buyer? Are production versus new drilling revenues more valuable to the buyer? Does the seller have customer relationships that can be leveraged by the buyer? Does customer concentration in the oil and industry mean more or less than it does in non oilfield transactions and why? How do we ensure transfer of MSAs from seller to buyer?
We have comprehensive data on all investment groups, venture capital firms, angel investors and corporations globally…
We know up to the minute corporate and investor oilfield growth and M&A strategies…
We know how to market oilfield deals to get the highest value for our clients…
We understand the oilfields of the US and the complex synergies between buyers and sellers…
We are a pro active M&A firm that executes a big bank process within a time frame…
“The principals of Ferguson White brought us the investors we needed as partners to help us grow Jan Pro and take it to the next level. They were great throughout the process. We are now a public company.”
“It was time for me to retire. The partners at Ferguson White did a wonderful job at facilitating the sale of Master Power Brakes and we thank them for it every day.”
“Ferguson White did a great job selling our company. What they do is very very special for us as business owners and they should be commended.”