Richard Marshall, the chief operating officer and vice president of Gulftex Energy LLC, offers some clear-cut advice to companies that are seeking to acquire private capital: Clearly articulating your track record is the most important part of the presentation you will give to a potential provider.

“Define who you are and what you’re good at. You’re going to have to convince a room of really smart guys that you have a track record that you can replicate with their money. Tie your track record to the business plan you are pitching. That will get you over the hump nine times out of 10,” he said at the Independent Petroleum Association of America’s Private Capital Conference in Houston on Jan. 24.

Marshall talked about his background in securing private capital. He has been involved in the development and exit of four South Texas E&P companies, which resulted in combined leasehold acquisitions of 180,000 acres, more than 250 drilled wells and the sale of more than $200 million in assets.

For management teams that are unfamiliar with the process of acquiring private capital, he also presented a what-to-expect list.

First of all, he said, lenders want to see a complete management team.

“If you are here today starting the process, you probably have a core group. Be careful about how you fit that group together. Make sure there is a lot of synergy in skill sets,” Marshall said, using the example of the Apple Computer Inc. co-founders Steve Jobs and Steve Wozinak. “Their skill sets were very well-matched. Wozinak was the engineer. He’s the one who came up with the hardware ideas. Jobs was the visionary and the promoter. Both of those skills were needed.

“You may have geologists or engineers who aren’t going to make the jump until you’re ready to go, but you darn sure ought to have them on board and ready to come so that they can be involved in the process.”

Marshall emphasized the importance of informing a potential provider about your team’s expertise. If, for example, your team consists of five people who together have 100 years of experience, “it’s important to note that, along with how many wells have been drilled and how many deals have been done,” he said. “This helps the capital providers see what kind of depth you have in the management team. After that it’s important to drill down and get specific about prior deals you have done, what kind of ROIs and RORs you have generated, what’s real and what you can document.”

When making your presentation, the key members of your management team all need to speak, Marshall said. “[The provider] needs to hear each one of you verbalize your business plan and how you’re going to fit in it. In other words if you walk in with five team members and one guy does all of the talking, they kind of wonder where everybody else fits in.”

Be aware that you have to put a significant portion of your liquid net worth into the company, he said. “Providers, whether it be debt or equity, want to see a meaningful participation. The incentivized team member is the best part of the equation you’re going to have.”

Marshall also highlighted what emerged as a common mantra during the day-long conference: hire an advisor.

Ask prospective advisors to describe some of their successful deals, and weigh how those relate to the business plan you are pitching, he advised. “You’ll want to quantify their résumé as far as a black book. Who all do they know? What equity planners do they propose to take you to and why?”

An advisor should also be able to provide a timeline for your project. “Map out the whole process. If you’ve got it in your mind that you’re going to get this done in four weeks and they’re saying four months, you’ve got a disconnect coming right out of the gate,” Marshall said.

“If an advisor has two or three deals going on, that’s good information to know. That’s going to play into your ability to effectively access the market and have their first-rate attention,” he said. Other factors to consider: “Does the provider back only one team in a basin? How do you fit in with other management teams the provider may be sponsoring in the area?”

In conclusion, Marshall said, “Providers see dozens of presentations per month, and if you don’t have a good business plan and a solid team -- that’s an easy way to shorten the meeting. You can have a good team and a good plan, but if you’re not excited about what you’re doing it is hard to get a provider excited.”