Buying an Oilfield Services Company

Buying a company with products or services that complement yours is a good way to grow your business. Another option is to merge products or services with a competitor to produce better products or services. Both scenarios may sound great, but many forget to think about other parts of the equation because they're excited about the possibilities.

Buying a business requires thinking about the following:

  1. Employees: What will you do about overlapping positions? Are you prepared to undergo reorganization? It may work for a short-term to think of the bought company as a separate company. However, the company will perform more efficiently when reorganizing it.
  2. Buildings and leasing: Would it be a better idea to postpone the buyout to match the time when the lease ends? What will you do about the bought company's buildings and leasing agreements?
  3. Culture: No two company cultures are the same. Both companies will need to prepare for a culture change and a new way of working.

When you buy a company that isn't a competitor, you may be able to keep doing things the same way. However, you'll have a better chance of optimizing both companies' resources when you combine them.

How Capital Solutions Helps Oilfield Companies

To ensure you get the working capital you need before, during and after the buy/sell, Capital Solutions Bancorp Oilfield Services provides you with a line of credit and acts as a conduit for installation payments. This assures the seller that those installments will come through.

Advantages of Working with Capital Solutions

The buyer can concentrate on growing and improving the business instead of dealing with cash flow problems. This set up will put the financing in place to help the company grow while paying the seller. It also saves time for the buyer who won't have to waste time looking for banks only to find out they won't approve of a line of credit. Furthermore, personal assets don't come to play.

The seller will take comfort knowing that payments will come in as expected.

Growing your business by buying a company is exciting. However, many people have the best intentions in starting something, but they struggle to finish because it takes more work than expected. If you accept it will take time and energy to make it happen, then rewards will follow. We help make the financial part easier on you.

Please contact us for a free, no obligation conversation to get questions answered and discuss how financing works.