5 Reasons Why O&G Companies Should Consider Selling Now
Presented by Joe Chavez from Allegiance Capital Corporation
and guest presenter Tim Tracey from Morgan Stanley
November 6, 1:30 PM CST
When the market’s favorable, it’s easy to think that sunny prospects can go on forever. But even in the midst of ideal market conditions, unforeseen events can spoil your chances to get the most from selling your company.
You’ve made your company your life’s work. Not a day has gone by that you haven’t thought and planned for it. There’s pride in the success you’ve had – you’ve earned it.
But your company is more than a life’s work. It’s an asset, one that has to be examined dispassionately like any other component of business. It’s time to think about the value of your company to potential buyers. Not knowing could be the biggest business mistake of your life.
Here are a few reasons why it’s wise to look critically at your company’s worth now rather than wait for later.
- Natural gas’ future is unpredictable. There’s been a boom as technological innovation makes extraction possible in hitherto unusable areas. But there is a growing movement to see more regulation of the natural gas industry. As politics becomes a greater factor, the value of natural gas investments is likely to fall.
- What goes up must come down. Anyone who has spent any time in the industry knows that this is true. The current state of the market is about as favorable as it is likely to get. In the event there is a call for increased production, oil and gas prices are likely to fall. After a rough first quarter this year, there has been a rebound – but the future is uncertain.
- Oil and gas stocks have underperformed for years. O&G companies are absent from Morningstar’s top 20 best performing stock sectors – and have been for several years.
- The market has peaked. Financial firms around the world are looking closely at their oil and gas holdings. Some are selling off their fossil fuel holdings for political reasons driven by concerns over the environment. Others are divesting for purely financial reasons: the $850B Norwegian sovereign wealth fund recently announced it is considering screening out fossil fuels purely through concern about the market’s stability.
Join us for a free webinar exploring issues vital to your company – and your company’s value in a changing market. On November 6, 1:30 PM CST presenter Joe Chavez from Allegiance Capital Corporation and guest presenter Tim Tracey from Morgan Stanley will discuss the realities facing O&G owners.
During this presentation you’ll learn about:
- Questions O&G owners should be asking themselves about what their company is worth
- What sort of topics O&G owners should be considering regarding the sale of their business and immediately after
- Why O&G companies are selling for the best prices in years
Register today and learn how you can protect the value of a lifetime.
Joe Chavez has six years of successful experience as a private investment banker advising clients in the oil & gas pipeline construction industry, transportation, heavy infrastructure construction in Canada and the U.S. and a wide array of manufacturers. In his role as an investment banker, Joe has developed long-standing relationships with a network of well-funded high-caliber international acquirers targeting U.S. investment opportunities.
Joe attended the University of Minnesota where he studied Management Information Systems and Computer Programming.
Tim Tracey transitioned from a career of creating wealth as a technology entrepreneur to managing wealth for private clients. As a Financial Advisor with Morgan Stanley Global Wealth Management, Tim’s practice is focused on providing investment planning for high net-worth individuals and business owners. Tim is a Chartered Retirement Plan Specialist (CRPS) who specializes in tax efficient Cash Balance defined benefit plans for privately held companies and professional organizations.
Tim earned his Masters of Business Administration from the Harvard Business School and his Bachelors Degree from Columbia University, majoring in History/Political Science.