3 Ways Oil and Gas Consultants Can Help You Prepare for an IPO
Has your oil and gas firm considered an IPO? Depressed commodity prices have created high financing costs, illiquid equity markets and reduced capital budgets for many oil and gas firms. While many companies successfully timed the IPO window in 2014, even more who aspired to go public could not. Despite the current headwinds, now is the time to prepare for a future bid to go public.
Completing a registration statement to be filed with the Securities and Exchange Commission (SEC) in connection with an IPO requires equal doses preparation and fortuitous timing. While the market is currently experiencing a downturn resulting from excess production both domestically and abroad, history has repeatedly shown just how quickly demand for oil and gas returns, and with that demand, an opportunity to raise capital and grow your business. While oil and gas consultants can’t predict the return of higher oil prices, they can make sure you and your management team are ready when it happens.
Here are three ways oil and gas consultants can add value to your IPO process:
1. Laying the Groundwork – The ability to quickly and accurately report financial information is critical to a company’s ability to timely file financial information required by the SEC on a quarterly and annual basis. Oil and gas consulting firms have a deep bench of experienced oil and gas consultants who understand the technicalities of a registration statement and how to create efficient reporting processes to support these required filings.
2. Drafting the Registration Statement – Intimidated by the thought of drafting a registration statement and communicating with the SEC? Don’t be. After engaging an oil and gas consulting firm, you will have a team of oil and gas consultants who can take on as much of the process as you need. Oil and gas consultants understand the SEC’s rules and regulations and how their reviewers enforce these rules due to their extensive communications with the SEC through the pre-clearance process and responding to SEC’s comment letters on behalf of their clients.
3. IT System Selection, SOX-Readiness and Audit Coordination – From implementing a more robust IT system to improving the internal control environment within your organization, oil and gas consultants can serve as your advocate and liaison, taking the stress out of project management and coordination among multiple vendors and allowing you to focus on your business.
Now is the time to prepare your company for the next IPO window – let an oil and gas consulting firm like Opportune be your trusted advisor.