The Financial Management Consultant’s Role in M&A Integration
Oil and gas companies can greatly benefit from hiring a financial management consultant to assist in the imminent transactions characterized by a volatile market. With the reduced availability of new oil and gas assets, some energy firms are expanding through acquisitions and shedding less desirable assets through divestitures. In the desire to speed up the M&A process and reduce costs, many companies are concentrating solely on IT and human resources integration and as a result, are failing to execute on critical front-end items, losing out on business line development, and struggling to build the proper financial structure.
By focusing on the reduction of integration periods and minimization of costs, many companies are unable to stabilize their new structure and often put temporary fixes in place that are not suitable for long-term success. Financial management consultants can use their deep industry expertise to conduct a proper review from a financial, business, and process level to offer suggestions and implement effective new processes that management often lack the resources and expertise to develop.
Financial management consultants can help acquiring companies decrease the integration timeframe while simultaneously reducing the overall cost of the purchase. To gain desired results, companies should utilize financial management consultants who can help:
- Create a short transition period to minimize costs and keep overall purchase price down
- Ensure rapid permanent stabilization of the organization
- Align business processes
- Conduct profit and loss reviews of all business lines to determine how they should be utilized going forward
- Improve in the talent allocation of the organization
- Position the new organization to best serve the marketplace