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Upstream: Transaction Support: Smash-Co

In August 2019, Opportune was engaged to provide advisory services and aid in the consolidation of a private equity investment firm’s (“Private Equity Firm”) current portfolio. Private Equity Firm operates as an investor for companies specializing in oil and gas acquisitions and exploitation, development drilling, acquisitions and mineral royalties. They have invested in a multitude of transactions with over 200 companies in the energy sector. With their initiative to cut cost, primarily to reduce G&A, Private Equity Firm identified four companies within their portfolio that had assets in the same area, thus providing means for suitable consolidation. It was determined that one of the four merging entities, a Midland-based E&P entity (“the Company”), would become the surviving management post-consolidation.

Opportune was engaged primarily to assist in the efforts to consolidate the various back-office systems from the merging entities. Two of the companies used OGSys, while the other two used Excalibur. The surviving system was to be Excalibur.

Because there were multiple source systems from different databases, this would prove to be a complicated conversion effort. As part of the conversion, Opportune professionals needed to consolidate master data and map code sets from differing systems. An additional complication was due to the companies’ similar asset bases, vendors and owners were duplicated across the systems, which required review and identification. Since multiple data sets were to be aggregated into one future system, the various company databases were assigned priority when analyzing duplicated records. While the data conversion was in progress, Opportune was also communicating with multiple software vendors to ensure a successful completion of the merger integration.

Opportune served as an expert conversion and integration advisor and was able to successfully deliver on the following:

  • Comprehensive project plan
  • System test acceptance documentation
  • Extraction of data from all systems
  • Mapping of cross reference file
  • Preparation of data conversion templates
  • Worked with multiple AP, JIB, revenue and AFE software vendors in order to successfully integrate into a singular accounting system

In January 2020, the cut-over was successful and the companies emerged as one consolidated entity. Opportune’s team of professionals have the expertise to provide clients with advisory services along with conversion and integration solutions. Their knowledge of best practices, business process improvements and software integration and implementation all contributed to their ability to allow for the successful execution of each critically important component of the process. We brought value to the Company on merger and acquisition assignments through the timely execution of each task that we’re assigned. For more information on our Transactional Advisory services and solutions, Click Here.

Byrony Coan

DirectorOpportune LLP