Between price volatility and the global economy most people are asking: How do I get a deal done? Because Beachwood is in the market all day, every day; I took some time to put together some quick guidelines to help you close in 2019.
Use your company’s costs in place of data you don’t have access to. Just because you don’t know how much the seller spends on a pumper every month, doesn’t mean you can’t make an aggressive offer. Don’t get caught up in the need for data and forget to make an offer.
The person who says a number first doesn’t lose. This isn’t 1973. Understand that in 2019, everyone has the same software, and internal value propositions will have the biggest impact on the overall success of your offer. Give a number. Get Started.
Be available and empathetic whether you are a buyer or a seller; everyone has the same goal in mind.
Don’t get emotionally attached to an asset. If the numbers work, they work. If they don’t, they don’t. Have the wherewithal to move forward, whether that’s with an offer or not.
Strip pricing is a good guideline to build models with, but don’t pull an offer off the table based on a six percent change in price to try to renegotiate. Pick a date to take over operations that everyone agrees on and pull the trigger quickly.
Sharpen your pencil on an offer; never on a bid. At the end of the day, if you are not dealing directly with the seller, sending another bid after the auction closes only wastes your time, energy and money.
Stop bidding. As a seller there are so many options to sell your assets that cost little to no money (commission free alternatives like Beachwood). As a buyer, bidding on property is the quickest way not to close a deal in 2019. You must target market and contact sellers directly to make transactions happen.
Delegate the process. Many hands make light work, and that is very true in oil and gas acquisitions and divestitures. Give your team specific tasks that are manageable and as the size of the deal grows, so should the team.
There is no use entering talks of selling if you can’t sell. If there are aspects of your company that are in a legal battle, or a family discord, etc., just wait. There will be a time to sell, but it’s not right now. Work hard on finalizing the issues so that you can sell without worrying that the deal might fall through at any minute.
There will be a significant amount of deals that will hit the market in 2019. Make sure you understand your operational expertise in an area and know, with certainty, that you need to be in (or out) of an area. Operational efficiency can be the difference between making money and losing money.
I’ll be looking for you at the closing table in 2019! Good luck!