New Money Enters U.S. Oilfield Services Industry

Acquisitions and Valuations Expected To Increase Over Next 12 Months

Shotgun Capital Advisors, LLC expects acquisition activities to intensify in the U.S. oilfield services industry sector. Recently, several large publicly traded companies have entered the oilfield services industry by completing strategic acquisitions as part of a growing trend towards diversification.

“We are excited to see additional players entering the oilfield services industry with highly recognizable brand names from outside industries” says Jim McGuire, President of Shotgun Capital. “These companies are major players in outside industries looking to diversify their businesses through acquisitions of oilfield service businesses, especially fluids transportation, disposal, construction, and equipment rental services.”

Recent publicly traded entrants into oilfield services represent $43.5 billion of enterprise value, and trade at an average 11.7 times EV/EBITDA, which is 57.5% higher than the established publicly traded companies in the oilfield services industry.

“When you increase the number of well-funded potential buyers, transaction values for a seller have the potential to rise, in some cases significantly” notes Jim. “We recommend owners of oilfield services businesses pay close attention to acquisition activities in the space, especially if they plan to exit in the next 5 years.”

Shotgun Capital Advisors, LLC is a Texas based merger and acquisition advisory firm with a specialized focus on the oilfield services industry.

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