Case Study: Oil Patch
Background:
Founded in 1990, this multiple owner group sought to sell the company at the absolute bottom of the energy market in 2016 but did not believe market conditions would support a desirable exit. Ownership did not have to sell the company and was positioned to ride out the energy market cycle.
Focus Strategies Service:
Ownership engaged Focus Strategies to pursue a sell-side transaction while facing very difficult market circumstances – very few transactions in the sector were underway and fewer still were successfully completed. Focus Strategies pursued due diligence and sell-side marketing documentation and materials. Thereafter, they reached out to more than 40 potential strategic and financial buyers believed to be good buy-side fits for the opportunity. From this buyer group, a strategic buyer was quickly secured with defined Letter of Interest (LOI) terms. As a strategic buyer, the LOI terms presented to the ownership group surpassed their expectations and they eagerly pursued closing. Because the strategic buyer is also a publicly held company, the closing process timeframe was longer than average yet Focus Strategies successfully met all of the closing requirements.
Outcome:
Both the owner group and the new strategic buyer were pleased with the transaction process and completed outcome in January 2017. New ownership has folded operations into their existing company, resulting in additional service and technological capabilities.