33 AUGUST 2026 WorldWide Drilling Resource® Drilling Into Money Not Boring by Mark E. Battersby Private Equity: 101 Private Equity (PE) firms are actively seeking investments in the drilling industry and attempting to consolidate fragmented markets. Their investments are helping drilling businesses acquire specialized technology, and fund capital-heavy infrastructure projects. Today, drilling professionals are seeing competitors merge, change ownership, or become part of larger regional operations. Many owners who have spent years managing the day-to-day operations and building customer trust, are being approached to sell their business. PE firms pool funds from a variety of sources to invest in privately owned businesses. Their goal is to improve the acquired operation and eventually realize profits from their investments. Any drilling professional thinking about selling his or her business must have a deeper understanding of the PE firm’s objectives and how they operate. In general, selling the drilling business to a PE firm will mean transferring ownership in exchange for the capital the operation needs for growth and, like it or not, advice and support. Although PE firms usually maintain their ownership stakes in a business for only three to five years, during that period they work to improve the business. Ownership change creates new expectations and budgets, pricing, purchasing, worker benefits, and even the role of retained management can be impacted with change. If debt was used to finance the acquisition, as with most PE acquisitions, the drilling operation will now need to generate enough cash to support those obligations. For the owners and employees in any business involved in a PE transaction, the most important question is often culture. Drilling businesses are built on the long-standing relationships among owners, crews, and customers. Most PE firms serve as advisors to the businesses they’ve acquired, helping iron out inefficiencies, developing new leadership teams, launching new services or products, and finding new avenues for the business to grow and profit. Acquisition by a PE firm reduces the operation’s dependence on the owner by bringing in new management. Of course, for many owners, a PE sale provides an exit strategy and opens the door to thinking about succession planning. PE firms typically prefer medium-term investments with a certain time frame for an exit goal. The obvious goal is to maximize the value of their investment during this period during which they have implemented improvements. The drilling business is then sold for a profit. Is the potential for more customers and suppliers, or greater purchasing power, worth the potential hassle of selling to a PE firm? Mark Mark E. Battersby may be contacted via e-mail to michele@worldwidedrillingresource.com Booth 306
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