By Michelle Seiler-Tucker, Special for USDR
After steadily increasing to recent highs, the price of oil has been dropping dramatically in the past six to eight months as worldwide oil production reaches its own highs. Americans refuse to cut back on production because they are supporting job creation which is a good enough reason for most. Saudis are not cutting production because they could care less what happens to America or the rest of the world. This phenomenon, in part, leads to a surplus in the American market which is contributing to the creation of a massive ripple effect on the underlying oil commodity market. Part of the money making ability of companies in the Oil & Gas Industry is directly correlated with the price of their particular type of oil.
This discussion about the price of oil and global supply and demand is for economists. There is a real issue to be addressed here and it concerns the future of small and medium sized businesses in the turbulent environment that the Oil & Gas Industry is sure to endure for the foreseeable future. With the price of oil unpredictable even by the smartest minds that spend decades studying these exact issues, why even attempt navigating this obstacle course? Danger, Danger, Danger! Even without the Ph.D. I think it is important to point out that Oil is not the future of energy in my lifetime. I think planning an exit strategy should be a headline topic for debate in certain board rooms around the country, and globe.
That is not to say that exit strategies do not exist where they should; however, a new perspective may be the right decision in this case. There are a lot of very smart people who dedicate their days to finding alternatives to what equates to an industry worth of livelihoods. Before it becomes too late to Sell Your Business for What It’s Worth, executives should think about divesting some of their businesses that operate in a solar system where the star is fading. Regardless of what ultimately happens to the price of oil and its place in modern societies as an energy source, presently the environment is frightening.
It may be worth considering that an exit strategy that allows investors to realize significant returns on their equity while providing the principles of the sell side ample liquidity for actualizing their potential opportunities exists. This is technobabble for making everyone some money! Before the disastrous effect of the plummeting price of oil renders small and medium sized business unable to capitalize on their hard work, they should speak with a Business Brokerage Intermediary.