A start-up, entrepreneurial senior management team backed by private equity was acquiring a large oil and gas asset, which included over 450 operated wells. The senior management team required due diligence and other transactional-related support throughout the process, as well as accounting transition services.
Backed by private equity, the team leveraged services primarily from two providers, an oil and gas field and project management service and Baker Tilly oil and gas client accounting.
Baker Tilly assisted the leadership team through the transaction and transitioned accounting for assets from the seller to the newly formed operating company (OPCO).
Before the deal closed, Baker Tilly worked with NAEM to put over 100 new master service agreements (MSAs) in place for OPCO with all vendors previously working on the assets for the seller.
After the transaction closed, the leadership team only had two months to transition asset accounting and field operations from the seller. OPCO sought additional support from the seller through a one-month transitional services agreement (TSA) with the potential for additional TSA fees for every month of delay.
The accounting transition included:
Over the course of the project, the following additional challenges arose:
Baker Tilly professionals met these challenges head-on by leveraging our experience, expertise and connections. Our data conversion resources have over 20 years’ experience converting to and from every major energy software platform. The following are just some of the solutions we delivered:
In the end, Baker Tilly successfully transitioned the project on schedule and under the original estimate.
Baker Tilly strives to continuously add value to clients. In this case, efficiencies in our outsourcing group have further reduced the client’s per-well costs. We bring value to our clients on every transaction advisory assignment through the execution of each critically important component we are assigned.