Transactions & Valuations Consulting

We help you evaluate major energy and commodities market investments with our independent, quantitative due diligence analysis that focuses on underlying value drivers and risks.

Our services are underpinned by our extensive in-house analytics and tools, ranging from global datasets and asset valuation to transactions data and research:

• Technical and commercial due diligence
  Evaluation of resources, development plans, costs, regulatory landscape and the underlying markets. We pay particular attention to the underlying assumptions that drive value, and are uniquely positioned to integrate costs, development, technological and commercial evaluation.
• Asset and corporate valuations
  Bottom-up valuations for energy and commodities assets worldwide, company valuations, and valuations based on precedent transaction metrics, leveraging our database of 40,000+ M&A transactions over the past 20 years.
  
  We generate and validate critical assumptions for evaluation, such as production profiles, development costs, pricing and macroeconomic outlooks. We also provide an independent value assessment through customized valuation models that combine detailed discounted cash flow and multiples-based evaluations.

M&A Support

Built on our extensive industry insights and proprietary information, our consulting team are leaders in providing both commercial and technical due diligence to support M&A transactions.

From risk advisory to business plan projections, we provide advice and support on all aspects of the lending, purchasing and selling process. We provide support from bid to post-acquisition:

• Screening of potential opportunities
• Help with origination efforts
• Support through transaction execution phase
• Negotiation support
• Board approval support and validation of investment decision
• Ongoing support for managing portfolio assets, including:
  • Project development
  • Regulatory compliance, risk analysis and quantification
  • Strategy
  • Technical management
  • Cost estimation
  • Ongoing energy market analysis of trends, risks and more

Renewables Consulting

Whether you are deciding to invest in a green technology, product or process, our industry experts are equipped to provide you actionable insights on the associated techno-economic, commercial and regulatory issues.

Our Renewables Consulting capabilities can help you with:

• Commercial and investment evaluation of renewable and green technologies
• Commercialization evaluation of developing technologies
• Financial feasibility studies and risk analysis
• Carbon footprint assessment and environmental issue analysis
• Environmental legislation and policies support

Transaction and M&A Support

From risk advisory to business plan projections, we provide advice and support on all aspects of the lending, purchasing and selling process. Whether you are involved in asset valuations, mergers and acquisitions, project economics or technical analysis, we can streamline your decision-making process.

We can help answer

• What is the potential upside and downside of a transaction?
• How does our forecast compare with the company's business plan?
• How can we better understand the integrated structure of a competitor's business?
• Are there premium products and what is the outlook for margins?
• How does the company differentiate itself from competitors?
• How strong is the company's IP position?
• How well maintained are the assets?
• What are the risks associated with this transaction?

Technology Assessment and Strategy

Whether you are involved in the selection, design, commercialization or construction of a technology-related process or product, we can help you devise an intelligent response to these types of challenges:

Investment Projects

• What technology risks are involved? Is it economically feasible?
• How do we go to market with this new technology? Which markets and market segments do we target?
• How do we find an independent technical consultant to provide support from pre-feasibility studies to the post-completion audit?

Technology Portfolio Optimization

• What is the latest R&D on a particular technology?
• Which commercial technologies are available to license?
• Are there technology opportunities available to us through a merger or acquisition?
• What are the commercial opportunities for our technologies?

M&A and Divestment

• Where do we obtain technical due diligence for a potential acquisition? For a financial transaction?
• What are the current and long-term outlooks for this technology’s competitiveness?
• What is the patent (IP) position for this technology?

Case Study: North Sea Infrastructure Investment

Challenge: A private equity firm required an independent assessment to support an investment decision for existing North Sea gas processing and pipeline infrastructure, and to understand downside risk to supply and identify upside volumes.

Solution: We identified gas volumes transported through the pipelines and leveraged our proprietary tools to create gas production supply outlooks for each pipeline under consideration. Notional volumes were supported by our exploration experts and Yet to Find analysis.

We also provided context and analysis on wider market issues (e.g. regulations, supply and demand) and included detailed information on existing and competing infrastructure to assets under consideration.

Results: The study was used to provide a forecast of the gas supply throughput for the infrastructure under consideration and gave the client increased confidence in making its investment decision. The client secured the financing to proceed with the investment decision and made a successful acquisition.

Case Study: Targeting an Early-Stage E&P Company

Challenge: A private equity firm targeted an early-stage E&P company with a relatively small position in the Appalachian Basin. The private equity firm did not plan to be involved in management and operations.

Solution: We evaluated and benchmarked quality of the assets involved, reviewed and evaluated the target’s business model, strategy and plan, and evaluated managerial and technical capabilities of the target firm.

We also provided an assessment of capabilities, including an investment roadmap with clear performance milestones using our proprietary databases.

We identified risks to post-acquisition expansion plans including access to rigs and service companies, implementation of manufacturing processes, continued funding and more. Additionally, we defined initial and contingent work plans and quarterly milestones for the post-acquisition business plan.

Case Study: Citral Manufacturing Target

Challenge: An investment firm was considering investing in an entity that produced citral from turpentine oil. The firm wanted to understand the competitive position of this process versus alternative routes for making citral as well as the market outlook for this industry.

Solution: We visited the manufacturing facility and generated an opinion of the target's manufacturing capabilities. We then used our extensive proprietary database to assess the market outlook for the citral industry.

We also conducted primary research with producers in China – considered a major competitive region. Our team developed cost-of-production economics for producing citral via turpentine oil as well as via isobutylene

Results: The client made a well-informed bid for the target and completed the transaction