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BUYERS:
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General –
3 Groups
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Specialized
Buyers – US/Foreign
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Oil and Gas –
US; US/Foreign; US/Canada
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BACKGROUND
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What business is
the buyer in?
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Finance,
Real Estate, International Trade
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High-Tech,
Natural Resources (O&G, clean energy), Real Estate, Other
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Oil and
Gas; Real Estate
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SPECIFICATIONS
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What kind of business/property
are they looking for?
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Income
Properties, Oil and Gas, Commodities, Wind or Solar Projects, Mines, Hotels
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High-Tech,
Natural Resources (O&G, clean energy), Real Estate Businesses and
Precious Assets (Art, Vehicles, Diamonds)
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Producing
Oil and Gas Operations
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What
size of business/property are they looking for? (revenue range, EBITDA range, other)
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Value – us$10mm to $100M+++ (larger is better)
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Value – us$10mm to $100M++; $5mm++
in revenues, $1mm++ EBITDA. Larger
is better.
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Full-purchase: us$50mm to $200mm, US; $500M+++,
Foreign.
Production-only: us$50mm to $100mm
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What
are the top 3 things they will look for in a potential business/property? (product line, value, management team, supplier
relationships, brand, etc)
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Production, Profit, Strong Management, Flexible
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Priorities (from top): Management, value, product, processes,
industry, profitability, early but strong phase in the business cycle
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In-place experienced management;
stable with growth potential for 3+ years.
Full-purchase: Production of 6K++/-
bbl of oil/equivalent per day to make worth us$50M++.
Production-only: 1K+/- bbl of
oil/equivalent per day (BOEPD).
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What additional
skills and resources do they bring to the deal (growth capital, new skills, familiarity with other
markets, etc)
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Additional Capital; Connections and talented professionals for Boards
of Advisors, Directors, and possibly Management Team
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Capital,
contacts, experience, expertise, critical thinking skills, more
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Long-term
O&G successes, strong financial resources, preference to have existing
management stay in place
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LOCATION of Buyers
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USA – NY, NC, FL, LA, CO, CA, other states and
Foreign
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Western USA and Foreign
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USA – East Coast; Texas; Chicago
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SOURCE of Funds (location;
private, firm, institutional)
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USA, Europe, Mid-East and India; firms,
institutional
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Western USA; personal, friends of primary buyers,
and funds (private equity and other institutional); Foreign; private
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Full-purchase:
USA – East Coast & Texas;
Production-only: USA- firm, institutional
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LOCATION for Purchases
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World, except US enemies
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North America and Foreign
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Full-purchase: USA or World except declared US enemies;
Production-only: USA/Canada.
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FINANCIAL
What are the financial parameters the buyer/investor
is looking for?
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Cash purchase within 30-90 days from contract
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Cash purchase within 30-90 days from contract
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Full-purchase: Cash purchase within 7 days from
contract;
Production-only: cash, 90-120 days from contract
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PORTFOLIO
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What other
companies/properties does the buyer have?
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Several worldwide
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Many High-Tech, Natural Resources (O&G,
clean energy), Real Estate; Precious Assets
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Full-purchase: many
O&G projects;
Production-only: Real Estate and O&G production
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What
synergies would the buyer like to achieve?
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Cooperation with management to continue production and profit
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Cooperation with management to continue production, collaboration and
profit
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Cooperation with management to continue production and profit
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MANAGEMENT (for
business purchases)
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Describe the management team the buyer can bring to
the table
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Many connections with
potential Management Team Members; Prosper Systems can provide
highly-talented Advisors
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Expertise in the areas
listed above; participate on Boards
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Will use existing management
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Does the
buyer want the existing management team to stay in place?
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Possible, but generally not necessary
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Yes, for
most situations
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Yes
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If
so, for how long?
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Until operation and relationship with Owners has stabilized
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At least 6 months
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Full-purchase: 6 months or more, until replaced;
Production-only: continuous.
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TRANSACTION
What type of
transaction is the buyer interested in?
(purchase/buyout, growth equity
investment, majority or minority position, etc)
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Generally
buyout, but open to creative options mutually beneficial to seller and
buyer
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Purchase/buyout,
growth equity investment, majority or minority position
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Full-purchase: buyout;.
Production-only: 20%-49% of production
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