Oil & Gas Business: Buyer’s remorse… deceitful sellers or just plain ignorant buyers?
Just take a second to think about it… How many times have you choked on the bitter taste of buyer’s remorse? Trust me; it happens to the best of us.
I always like to think of myself as someone who errs on the side of caution when it comes to parting with my hard earned cash. Don’t get me wrong, I enjoy frivolous spending as much as the next person–such as sampling a bottle (or two) of good wine and over indulging on delicious food in a top restaurant on a Friday night. But you wouldn’t catch me putting my money over the counter without eyeballing the product first and being sure to check its quality.
However, this weekend I found myself feeling hard-done by, resentful and quite frankly cheated in aserious case of buyer’s remorse. And worst of all… I could only blame myself.
Why does it always rain on me?
Last month, I made the decision to purchase a car; a fairly large investment for someone who usually spends their cash on eating out. But now winter is well and truly upon us, I was starting to get sick of the 15 minute walk carrying my groceries back to the house in the pouring rain.
I came across a smoking little motor in an advert in the local paper. Upon viewing the car, I was blown away by its fantastic condition (well, on the outside). It was the right colour(very important for a female), it had no damage to the exterior and it was so comfortable to sit in. The owner told me it was in fantastic working condition and had never let them down. I gleefully passed over the cash in exchange for the keys.
So imagine my sheer horror, three and a half weeks after purchasing my little beauty when it conked out on me on Saturday… engine smoking, in the pouring rain.
I’ve been told that repairing the car is likely to be well over the £2000 mark. I had not anticipated ever spending this on repairs, and consequently I had never saved up for this particular rainy day.
This morning, whilst in a meeting discussing asset transactions in the oil and gas industry with one of my A&D contacts, we talked about the importance of knowing what you are buying when purchasing an asset. Unlike my £2000 unexpected fee, oil and gas companies are risking exposing themselves to hundreds of millions of pounds in unexpected costs. These figures are not to be taken lightly. But yet this still happens for oil and gas companies who find themselves with an asset that in reality is very different to how it looked on the tin.
And as hard as it may be to admit, this is not usually down to a "false sale," but actually owing to a lack of due diligence. An oil and gas company cannot be cautious enough when it comes to asset transactions and believe me—due my own recent experience—they really cannot afford to take risks without knowing exactly what they are letting themselves in for.
So, despite the rain clouding my vision once again, one thing’s for sure: Next time before parting with my money, I will check and double check again what I am signing myself up for. I hope you do too.
By Lucy Brennan
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