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The Assignment / Client’s Problem

  • Evaluate the demand in North America for production pump consumable parts and forecast outlook of the market for water flood pumps, the key business of the target company (the “Target”)
  • Determine what other adjacent opportunities may exist to expand the Target’s business both geographically and by offering
  • Review the channel flow for the product and establish how the  Target’s current position can be better leveraged

Westwood’s Approach & Analysis

  • Comprehensive overview of the business including management and customers interviews
  • Utilizing Westwood’s proprietary global wellstock and drilling data, establish current and future activity levels for the driver of the business
  • Leveraged key industry contacts to understand core supply chain relationships and how the company is positioned
  • Segmented products and regions (basins) to analyse individual demand streams and better understand growth potential
  • Detailed discussions with customers provided insights on the intrinsic qualities of the business and provided the client with a better insight into the importance of key personnel

The Outcome & Benefit

  • Provided transparency on the core business and outlook for the market to the PE firm’s investment team
  • Reviewed the positioning of the Target’s business and detailed the potential growth opportunities to the client
  • After presenting the findings, our client decided to pass on the opportunity given the state of the oilfield manufacturing space and the challenge of the growth opportunities in a constrained market