How to Get Deals Done in 2019

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!

Author Profile
Contributor -

Josh Robbins is currently the Chief Executive Officer of Beachwood Marketing. He has consulted and provided solutions for several industries, however, the majority of his consulting solutions have been in manufacturing, energy and oil and gas. Mr. Robbins has over 15 years of excellent project leadership in business development and is experienced in all aspects of oil and gas acquisitions and divestitures. He has extensive business relationships with a demonstrated ability to conduct executive level negotiations. He has developed sustainable solutions, successfully marketing oil and natural gas properties cost-effectively and efficiently. Beachwood strives to partner with top tier oil and gas firms to find off-market deals that provide maximum benefit to their corporate acquisition strategy. At Beachwood, Mr. Robbins manages the corporate branding, senior staff, and the Beachwood Strategic Consulting Group, including sales strategy development for all of the Beachwood clients. Josh has been featured in numerous trade magazines as he is an accomplished writer and speaker on the acquisition and divestment market. He writes a bi-monthly acquisition and divestiture column for Oilman Magazine that has a social reach of an estimated 145,200 views per issue. The best way to reach Mr. Robbins is through email.

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