M&A support to an advisory firm on a large oil and gas merger project

CLIENT CHALLENGES

A leading advisory firm sought M&A support for the execution of one of their cross-border M&A advisory mandates

Conducted analysis on the business activities of both the firms undergoing the merger. Reviewed the assets held by both the firms and the key operational parameters like reserves, resources, upside potential, interests held, development plans, production profiles, profit shares, etc.
Analysed the gas monetisation options by understanding the two countries’ gas market potential, pricings, demand, supply, regulations, gas policies, consumer markets, etc.
Reviewed the local gas players in both the countries, which could act as potential buyers for gas out of the assets and can undergo 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 DCF analysis as well as trading and transactions comparable
Analysed the pro forma operational, financial and market values and synergies from the merger
Analysed the various deal funding options and the impact on the new firm formed

Supported the client during the deal execution
Provided team support with high-calibre and experienced oil and gas professionals
Provided the client with financial analysis capabilities that helped them in creating value-added products and analysis for the deal
Developed the investment rationale for the acquiring company; provided bases for high growth potential, strong earnings and financials, debt financing capabilities, geographical expansion, diverse asset portfolio, fundraising 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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