We hear the same problems at every meeting: “We see all of the same properties that appear on these bid sites, but those properties aren’t what we are looking for. And, on the off chance they are, we have to fight with 25 other companies to get the property. We refuse to overpay for assets, so we end up losing out on these opportunities. How can we find oil and gas properties that fit our acquisition profile, and not have to worry about our competition forcing the price up? How can we build our company operations without spending hours in data rooms, only to find that the property we want has a low NRI or astronomical expenses?”
I know you’ve asked these questions in this pricing environment as well.
Beachwood focuses primarily on off-market assets, so we tend to see deals form from inception. We talk with nearly 1,600 oil and gas firms a month, and live in the A & D market day in and day out, discovering new deals every single day.
We have found that, through relationship building and core client management, finding deals has turned into an art form. We call it the Art of Business Development. Each day I am asked about my background, my schooling, my area of expertise. Do I come from the land, engineering or operational side of the business? Truth is, I have to work with them all. We all do. In order to really get the deal accomplished, you have to know and relate to each member of the organization.
Business development is more than a card at a conference or a hand shake at a meeting. Business development, at its heart, is not about your company’s business, but the business you are working with. So many companies try to sell their widget or service without understanding the solution it provides. Knowing the people with whom you are working not only identifies the need for your product or service, but also provides a solution. The same is true when you are buying assets in this market.
As a lead generating organization, focusing entirely on off market deals in the oil and gas market, Beachwood is in a constant state of business development. We know that the best way to find out what an organization is interested in (whether buying or selling) is to let them tell us. Listening to the issues of your company, client or prospect will change the approach of your business strategy. Don’t just connect on LinkedIn or like a status on Facebook and call it Business Development. Engage on multiple levels with multiple people, identifying each issue and subsequent solution.
Discovering deals in this market is not the issue we are facing. There are more deals now than there have been in the past year. The issue is the ability to close those deals. We see the buyer and seller disconnection every day. Overcoming this obstacle can be accomplished, but you have to look at your organization honestly. You have to know where your company is going (both internally and externally), be able to focus on your core market and then provide value to deals that fit into your acquisition profile.
With all of these pieces laid out, contacts can be made, refreshed or built upon. Oil and gas is a small community, offering a multitude of opportunity at every level. And being nearly 20% into the 21st century, business development doesn’t look the same as it has over the past 100 years. We are able to communicate faster, travel quicker and uncover opportunities through technology. Use these as strengths and revamp your network.
The Art of Business Development requires research, commitment and a strong sense of direction. We live in a world that is becoming more and more connected. With that knowledge we can uncover more and more opportunities. Those can be buying oil assets, selling equipment, finding mineral deals, decreasing operational costs, increasing revenues or streamlining processes.
Oil and gas companies are regularly faced with many industry-specific issues to overcome. Such issues, including exploration and drilling, are often complex and intricate processes with many unique challenges to overcome. Data analytics can play a massive part in streamlining some of the most fundamental operations that are involved in the oil and gas industry.