The oil and gas industry is an incredibly lucrative source of employment and contributor to the national GDP. In fact, it is considered the biggest sector in the world in terms of dollar value because it generates billions globally. This is due, in large part, to the fact that it is a highly necessary energy resource with an estimated 30 billion barrels consumed around the world each year.
Although this industry is influenced heavily by political, economic and social concerns, it must undergo a similar process to prepare for a sale. Much like other businesses, as the owner of an oil company, you must get your finances in order, determine the value, and enter into confidential negotiations with potential buyers. Because an oil business is so important and sought after, consulting with a broker is highly recommended. Brokers serve as your advisor, mediator and extra set of hands, providing expert business advise and guide you through the entire process.
1. Prepare your finances
With the help of a broker, you must balance all checkbooks, determine profitability and organize all other financial aspects of the business. Once this has been done, you can determine an appropriate listing price.
2. Market the business
Once a price is set, your broker can list your business within their network. Well-connected brokers have an arsenal of buyers and sellers who are matched by industry, asking price, location and other relevant aspects. Positioning your company to appeal to the right buyer is critical to getting the best price for your business.
Without a doubt, an oil company will have several inquiries. Your business advisor will ensure every interested party will sign a confidentiality agreement and their offices can serve as a neutral setting for meetings and negotiations. During this time, be prepared to answer questions regarding financials, employees, location, etc. among other details.
When you have found a buyer, your broker will choose a closing date that works for every participating party. At this meeting, final documentation is signed, filed and the business is handed off to its new owner.
The oil industry is, without a doubt, an important one. If you are ready to sell your business in this industry, do not hesitate to call your Transworld Business Advisors team in Houston today at 281-769-4277. With the help of a broker, the selling process will be a painless, smooth transition.