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
