Due Diligence

A Dutch Private Equity Firm was invited to join a competitive bidding for a company active in the oil and gas industry. The bidding process covers different phases, in each phase the seller provides information containing increasing levels of detail. To advance to the next phase, the bidders are to submit a narrowing envelop of acquisition prices.

During each phase, information is presented regarding the different unique attributes of the company for sale. This includes financial statements, but also includes commercial information regarding project or sales history, the orderbook, offering pipeline, prospects and leads etc. In addition information regarding the organisation and management of the company is disclosed, any industry specific approvals, certificates, patents or other details on Intellectual Property, the use of a sales agents network, geographical focus and the competitive landscape.

The Private Equity Firm did not have specific oil & gas participation or specialists in its team, and invited an oil and gas industry expert through Holwater to participate in the various phases of the bidding process. The industry expert was able to provide support by assessing the information received, as well as additional information regarding competing technology threats, market information, both general and specific for the product and the geographical regions. The bidding process was limited in time, therefore a quick assessment of information and a fast turnaround is essential. The industry expert was also available to attend technical or commercial subject specialist meetings, being able to value information provided on the spot and ask industry specific questions.