Case Study:

Company Sale

Energy Sales, LLC

Business Description:

Energy Sales, LLC, based in Odessa, Texas, is one of the leading manufacturers’ representatives and wholesalers for oilfield and energy supplies in the greater Permian Basin the Rockies. The Company provides the critical link between original equipment manufacturers (OEMs) and the industrial distributors supplying pipe, valves and fittings (PVF) supporting the ultimate oil and gas production and midstream end-users.


Challenge:

The owners desired to "test the market" with the goal of consummating a sale or recapitalization allowing them to generate liquidity for their equity. The Company has experienced volatile earnings, but had remained profitable through the oil and gas industry downturn. Additionally, the Company was not audited and with its rapid recovery after the downturn, the inventory and accounting system had reached its potential, thereby requiring a focused due diligence effort.


Solution:

The owners engaged us to provide merger & acquisition advisory services. We broadly marketed the Company and created an auction dynamic among qualified buyers. We aggressively solicited interest from a number of private equity groups and several strategic buyers and negotiated a favorable transaction with Smith-Cooper International, which is backed by Tailwind Capital. We were able to manage through the challenges and achieve a successful company sale providing liquidity as well as future upside for the owners.