Oil is big business in the worldwide economy, since it is one of the most important energy sources used in Michigan and elsewhere. This makes owning a business in the oil industry potentially quite lucrative. Business evaluation experts indicate that many oil companies are worth billions of dollars. Now the controlling family of one of these multi-billion-dollar oil companies is planning to sell their highly-profitable and closely-held company.
The controlling family of Champion Technologies Inc. is now looking to sell the company, which is one of the largest producers of oilfield chemicals in the world. The family has controlled Champion Technologies since 1959. The company has reportedly been in talks with a bigger rival regarding acquisition for a sale price of approximately $2 billion. Champion is currently operating in a market with large competing corporations such as Schlumberger Ltd., Halliburton Co. and Baker Hughes Inc.
The family who currently controls Champion is not the first group in the oil business to consider selling their company. The family behind Yates Petroleum Corp. is also looking for a buyer for their business, which is estimated to be worth billions of dollars. Another company, Samson Investment Co., was recently bought by KKR & Co. for $7.2 billion.
The sale of a closely-held business in Michigan or anywhere else can be a complicated matter. This is especially true for companies like Champion, which have billions of dollars worth of assets at stake. It is important that a well-trained expert performs the necessary business evaluation. For companies with many assets and complicated corporate structures, which can include holdings around the world, it may be wise to hire a legal professional for assistance.
Source: Bloomberg Businessweek, " Champion Technologies Family Said to Seek $2 Billion in Sale ," Zachary R. Mider and David Wethe, Oct. 12, 2012