As Houston is the energy hub, most of our clients are involved in the industry in one way or another. Since we started in the 1980s, we have assisted numerous companies with energy related business models including engineering, manufacturing and exploration and production. Originally, we handled only a small number of oil & gas working and royalty interests. Now a significant amount of firm business relates to companies making investments in exploration and production.
In 2003, we helped two guys in the seismic equipment business with the typical challenges of starting a small company. All of the business stars were aligned--the energy market was great, both partners were knowledgeable with complementary skills, and both had visions of growth. Equipment sales multiplied for the first three years with tremendous margins and wise capital reinvestment by the partners. In 2006, the company changed the business model while also increasing value by retaining ownership of the equipment. In December of 2008, the company concluded a successful $68 million private equity transaction.
Duff Kitchel handled every financial aspect of the company’s evolution beginning with CFO responsibilities on an outsource basis. As our commitment grew, Chuck Duff and the Duff Kitchel staff became fully integrated with management. In addition, our team coordinated the hiring and training of the new in-house staff, while retaining the complex and non-recurring accounting projects. This engagement and expansion of services changed Duff Kitchel’s business model into what it is today—a complete financial package for small to mid-size companies, tailored to the specific size and needs of our clients.