Owners of well-respected aerial patrol operator based in Midland, Texas looking to retire from business after decades of service.
Energy, Power & Infrastructure
Oilfield Services & Equipment
In business for over 30 years, American Patrols is a well-respected, family-owned aerial patrol operator based in Midland, Texas. The company provides oil and gas production lease patrol, water pipeline and gathering patrol, aerial photography and land/right of way inspection services to several of the largest E&P operators in the Permian Basin. Romanchuk & Co. was engaged to be the exclusive sell-side advisor for the owners, who were looking to retire from the business.
UNIQUE MARKETING APPROACH
We had to approach the marketing of American Patrols a bit differently than what we would consider a more traditional process given the unique attributes of the company:
The company's niche services would require an investor with a similar operational background
Owners both desired to retire fully from the business within the first six months post-close
Oil and gas industry was still recovering from the recent downturn
FINDING THE BEST FIT
Knowing a traditional marketing approach for this business to a strategic or private equity firm would likely not result in a successful process, we leveraged our extensive network within the energy services industry to conduct a targeted search, ultimately finding an independent sponsor that met the requirements the exiting owners were looking for - both a strong valuation and comfort knowing that the Company’s operations would be in good hands. American Patrols received a LOI from Bear Capital and the deal progressed through due diligence and legal documentation smoothly and closed in just a few months.
INDEPENDENT SPONSORS VS. PRIVATE EQUITY
Independent sponsors are becoming more and more popular in today's marketplace. What makes them a bit different from private equity firms, is that they usually conduct their fundraising efforts on a deal-by-deal basis instead of drawing from a committed capital fund, and also target deals more directly based upon their operational experience. Bear Capital not only had the business and financial experience of owning a company, but had nearly a decade of experience as a Pilot and Director of Operations in the Air Force. This gave the owners a high level of confidence that the company they built would transition smoothly for their customers and employees.
The above testimonials may not be representative of the experience of other clients and should not be construed as a guarantee of future performance or success.