Main content

Midstream: Process & Technology: Merger Integration Services

A large midstream natural gas gathering and processing Master Limited Partnership (Company) acquired three diverse companies for $8 billion in a matter of four months.  Company was faced with completing Day 1 and long term integration activities covering commercial, operations, accounting, IT, legal, EH&S and HR functions in a very short period of time. Opportune was engaged to develop and manage the integration activities.

Acquisitions are complex because the employees, financials, operations and systems must continue to operate the businesses under pressing deadlines for the transaction close and transition services period in the case of carve-outs.  For the three acquisitions, two were the outright purchase of the entire company, and one was the carve-out of the midstream division only.  By working with the executive management team of Company, Opportune developed a comprehensive plan to assimilate the three companies, while not disrupting the day-to-day operations of all organizations involved.  A key focus for Opportune was to develop plans to achieve the synergies promised by the acquisitions.

G&A reductions were a key driver of the synergies.  Opportune supported the management team in reviewing headcounts of the combined organization and by identifying staff reductions to better align with the operating model of Company.  For the 1000 retained employees, Opportune developed an onboarding process so that on Day 1 each employee was warmly greeted into the new organization, their payroll and benefits were transitioned, and safe operating procedures were communicated in 15 different corporate and field locations.

Long-term synergies are driven by standardizing business processes, IT infrastructure and systems, and efficient organizations.  Opportune defined standards for AP, AR, GL, Treasury and Procurement processes for the organization.  Working with the CIO, Opportune determined  short and long-term roadmaps for moving the acquired companies into a standard set of tools and applications.  Lastly, Opportune co-managed the consolidation of the corporate and field facilities, including office space build-outs.

Opportune brought significant acquisition integration experience to a very complex set of acquisitions in a short period of time. Opportune’s strong project management, midstream expertise, flexibility and responsiveness allowed Opportune to be the strategic partner to Company in support of their synergies realization and business integration.  Opportune was subsequently hired to manage two additional acquisitions, including one of the largest ever in the midstream sector. For more information click here.

Kurt King

PartnerOpportune LLP