Case Study:

Company Sale

Two State Oilfield, Inc.

Business Description:  

Two State Oilfield, Inc., based in Hobbs, New Mexico, is one of the leading providers of water containment and storage rentals and water management services to oil and gas producers in the Permian Basin.


Challenge:  

The owner desired to sell the business. However, he had previously attempted to obtain interest from buyers, but was unsuccessful.


Solution:

We were engaged as merger & acquisition sell-side advisor to create and manage an auction sales process to solicit a number of credible buyers for which the Company had a strategic fit. We aggressively marketed the Company, solicited interest from a number of qualified buyers and negotiated favorable terms with Frac Tank Rentals (backed by Lone Star Investment Advisors and Venquest Capital Partners) and successfully closed the company sale. The transaction generated substantial liquidity for the owner and additional future payments, thereby surpassing his expectations.