Upstream Oil & Gas M&A Deal Execution Support

CLIENT CHALLENGES

The client wanted us to support it on the execution of one of its M&A advisory mandates
The work involved: providing support on valuing the companies involved in the merger and analysing the impact the merger will bring on the new company formed as well as preparation of investment presentations for the deal

Analysed the business activities of both the firms undergoing merger. Reviewed the assets held by both the firms and the key operational parameters such as reserves, resources, upside potential, interests held, development plans, production profiles, profit shares,etc.
Analysed the gas monetisation options by understanding the Nigerian and Ghanaian gas market potential, pricings, demand and supply dynamics,regulations, gas policies, consumer markets, etc
Reviewed the local gas players in both the countries that could act as potential buyers for gas out of the assets and can undergo a gas purchase agreement
Analysed the debt restructuring process for the merged firm and determined the impact on debt after merging and restructuring
Determined the valuations of the merged firms using discounted cash flow analysis as well as trading and transaction comparables
Analysed pro forma operational, financial and market values and synergies as a result of the acquisition
Analysed the various deal funding options and the impact on the new firm after merger

Supported the client during the deal execution
Provided team support with high caliber and experienced O&G professionals
Provided the client financial analysis capabilities that helped it in creating value added products and analysis for the deal
Provided investment rationale for acquiring company; provided basis for high growth potential,strong earnings and financials,debt financing capabilities,geographical expansion, diverse asset portfolio, fund raising capacities, management team capabilities, partners/stakeholder strengthening, etc.
Provided views on various post merger strategies, such as management structure and shareholding structure

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