Performance Optimisation, Merger Integration & Interim Management
FTI Consulting has deep expertise in enhancing company value. We have extensive experience across the deal lifecycle and with critical corporate situations that give us a clear perspective on where value exists and how it can be optimised. We consider deal structure, industry sector and such unique client requirements as filling management voids to customise the integration approach to deliver maximum value.
Our Service Offerings
The success of a restructuring, merger, acquisition, spinoff or divestiture may depend on how quickly management voids can be filled or missing management capabilities can be added for a certain period. The seasoned professionals with C-level experience at FTI Consulting are prepared to fill the void when oil and gas clients face leadership, financial or operational challenges. In a moment’s notice, our experienced and credentialed senior executives assume C-level roles, providing the leadership and strategic decision-making ability to maintain momentum, establish corporate priorities, build morale and provide critical continuity. Our C-level executives serve in the following roles: chief executive officer, chief operating officer, chief financial officer, chief restructuring officer, controller and treasurer.
Companies often do not have the resources to properly manage the budget and timetable for the construction and/or installation of an upstream oil and gas facility or other critical programmes. FTI Consulting has those resources to assure that a client’s budget and timeline are met. Through our exclusive Project Management Office (PMO) approach, we identify the root costs of deviations, define measures to get back on track, and support the implementation of the measures to assure that final targets are achieved. This is based on our long-term experience in these situations and secures the results are achieved with minimised additional workload for key staff.
Companies that have upstream oil or natural gas facilities that are up and running but not meeting expectations — i.e., disappointing cash flows, technical mishaps, etc. — call on the highly experienced professionals at FTI Consulting to analyse existing conditions and propose and implement financial and operating improvements. This process helps our clients maximise efficiencies at their facilities, and achieve improved profitability levels and operational standards. Based on our long-term project experience we identify the most relevant operational improvement levers and secure that they are successfully implemented.
Cash & Working Capital Management
For oil and gas companies, it is critical to manage cash and working capital. The difficulty is that many companies do not have the resources or the experience to develop the required methods and processes. Because of our extensive experience with upstream oil and natural gas clients, FTI Consulting is often called upon to help. Our professionals include former natural gas and oil facility managers with strategic, operational and financial backgrounds to provide a realistic, fast and optimised plan to improve cash and working capital positions. We customise cash flow forecasting, modelling, monitoring processes and working capital management. Most any evaluation of working capital management involves inventory control. We secure that minimisation of inventories is done without jeopardising the client’s production process. Our experience guides us in developing and implementing capital optimisation strategies for our clients that are practical and operational.
Merger Integration & Carve-out Planning
The success or failure of a merger usually depends on what is accomplished after the deal closes. Merger integration of cultures, processes, organisation, assets, personnel, IT, and business activities is a complex process that can take a few months to a few years. FTI Consulting professionals, in our Corporate Finance and Economic Consulting Practices, have wide experience — in the upstream oil and natural gas sectors and in most all industries across the globe — to provide the critical integration support necessary to sustain the merged business’s operational and financial performance. And where an upstream oil or natural gas company needs to acquire only a portion of another, FTI Consulting carve-out specialists can prepare a deal that will deliver the right people, the right assets and the right infrastructure to the acquiring company and then follow up with the integration of the carve-out assets.
In transformation phases, e.g. when a new CEO, COO or CFO joins a company, there are many issues that need to be addressed and prioritised urgently, reviewed quickly, or tabled until later. Because of the vast upstream oil and natural gas experience of FTI Consulting professionals, we are often called upon by new management of a natural gas company or oil facility to create a plan for the first 100 days. This is very detailed and structured and prioritises specific tasks accompanied an actionable plan for each. The plan incorporates past efforts with current needs that support attainable goals. Included are responsibilities of others involved and a timeline. The result is a fast, controllable and efficient ramp up or change process for new management.