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Private Equity Experience

We have specific experience working with and for private equity firms considering energy-related investments.

Example projects include:

A premier private equity group interested investing in a company that provides oil & gas staffing services engaged us to conduct commercial due diligence and review the markets in which the company operates. We prepared a Target Review where we identified and reviewed the primary drivers and leading indicators of the Target’s income and earnings growth. In addition we conducted a market review, client analysis, review of competitors, and provided a business plan review. The clients used this information to evaluate the growth potential and future success of their investment target.

A private equity fund asked us to analyze the turboexpander market, including the current installed base and replacement demand, future demand for turboexpanders in specific applications, and customer perspectives on selected turboexpander suppliers. The specific applications of interest include hydrocarbon processing, chemical processing, midstream gas processing (cryogenic separation), and LNG processing and production. We analyzed these applications as well as key suppliers in this space. Our client used the results of this analysis to help it determine whether and how to make additional private equity investments in the turboexpander segment.

A private equity client engaged us to analyze an investment in a helicopter transportation services provider to the oil and gas sector in Alaska. We analyzed the macro and micro drivers influencing the Alaskan oil and gas sector, especially as it relates to the helicopter business there. We provided an independent assessment of key economic fundamentals, underlying drivers and indicators, and an understanding of the key E&P operators in the area, especially after recent strategic moves and market exits by selected players. Our client used the results of this work to better evaluate whether and how it should invest in a helicopter services venture that will serve this market.

A private equity firm considering whether and how to invest in a target that provides a variety of surveying, engineering, and permitting services to upstream energy clients engaged us to complete a phase 2 due diligence on the Target. In phase 2 we provided a further assessment of the Target’s business, client perception interviews, downside case analysis, and analysis of the Target’s competitive positioning. The client used the results of this study to inform their investment decision.

A private equity company considering an investment in a provider of compliance employee certification services for refining, E&P, petrochemicals, and the refining industries asked us to provide a phase 1 assessment of the Target’s business, including an evaluation of its financial condition, review of industry drivers including those regarding employment and employee testing, operator perspectives on purchasing these services, and key risks to the business. The client used this information to determine whether and how to proceed to purchase an equity stake in the Target.

A private equity firm looking to acquire a provider of engineered cryogenic equipment and services commissioned us to review the markets and commercial environment in which the Target operates. We provided a macroeconomic overview of the energy sector with a focus on LNG, natural gas, & industrial gas; overviewed the market; analyzed demand drivers; forecasted the LNG, natural gas, and industrial gas markets; and completed an analysis of customers and purchasers of the Target’s products & services. The client used this information to evaluate their decision to invest in the client and improve their understanding of the market conditions.

We completed commercial due diligence analysis for a private equity firm interested in acquiring a target company, a leading provider of electrical & instrumentation and transmission & distribution services to the North American energy infrastructure market. The client needed additional information regarding the target’s current strategy, product demand drivers, position with current clients, sector competitive position and intensity, supplier relationships, and service offerings. The information helped the client develop an informed view of the value of the target and helped it as it considered whether and how to make an offer to the target.

A large North American private equity firm engaged us to evaluate the proppant market in the US oil and gas sector. In particular, it seeks to understand how customers select, specify and purchase proppant; whether and how proppant usage varies by basin, field and/or operator, and what factors drive the purchase decision, among others. It would like to understand the key drivers behind proppant demand, how proppants compare to one another, and the key logistics issues related to proppant supply. The client the results of this analysis to better understand whether and how changes in energy markets and commodity price levels affect proppant markets, allowing it to make better decisions regarding current and potential future private equity investments in this space.

A private equity firm with limited experience in the energy sector pursuing a potential acquisition of a provider of survey engineering and permitting services engaged us to review the markets and commercial environment in which the Target operates. In Phase I of the project we provided an initial assessment of the Target’s business, analysis of the Target’s current and forecast market share, an independent point of view on customer concentration and customer stickiness, key business and industry risks, and other potential headwinds to the business. The client used the results of this Phase 1 analysis to determine whether and how to proceed to purchase an equity stake in Target.

A private equity firm focused on small and middle market operating companies involved with a potential acquisition of a manufacturer of parts for plunger pumps engaged us to provide buy side due diligence related to the acquisition. We provided an assessment of the Target’s business in the plunger pump sector and the pump parts manufacturing space including details on market drivers, key competitors, customer purchasing decisions and behavior, and other factors. We also overviewed the Target’s current and forecast market share, key business and industry risks, competitive landscape and differentiation, customer analysis, the supply chain, and other relevant factors. The client used the results of this Phase 1 analysis to determine whether and how to proceed to purchase an equity stake in the Target.

A provider of oilfield services in North America, who recently purchased stakes in three separate firms that provide machining and manufacturing services to the energy industry, engaged us to provide analysis of the precision tool and premium parts markets and help them develop a business plan and strategy for the next five years. Our study helped the Company understand the market potential for its goods and services and how this potential might evolve over the next five years. The company used the results of our report to improve upon its strategy, its market penetration, the range of services provided, and increase revenues and operating income over the next years.