Oilfield Services: Valuation/Complex Financial Reporting: Financial Reporting & Purchase Price Allocation Services In Connection With Merger

In August 2020, a prominent oilfield services firm (“the Acquirer”) forged an agreement with another renowned oilfield services firm (“the Target”) for the contribution of the Target’s onshore hydraulic fracturing business in the U.S. and Canada, including its pressure pumping, pumpdown perforating, and Permian frac sand businesses to the Acquirer, in exchange for a 37% equity interest in the combined company. The transaction closed in Q4 2020.

Opportune LLP was engaged to provide related technical financial reporting, valuation, and purchase price allocation services to the Acquirer. Specifically, Opportune’s professionals were able to successfully deliver on the following:

• Prepared pro forma financial statements combining the historical financial statements of the Acquirer and the Target after giving effect to certain restructuring events and the acquisition of the Target using the acquisition method of accounting.
• Technical research, analysis, and documentation of conclusions regarding the appropriate treatment of the acquisition under ASC 805.
• Performed a purchase price allocation on the Acquirer’s acquisition of the Target’s business, specifically conducting the valuation of acquired intangible assets.
• Coordinated with third-party appraisers responsible for the acquired real and tangible personal property.

Opportune added value by assisting the client in thinking through key valuation considerations, coordinating the overall valuation analysis, and discussing our findings directly with the client’s third-party auditor. The results of our efforts assisted the client with the successful completion of their purchase price in connection with the acquisition, including working with their audit team to ensure the process was seamless.

Our consultants are industry experts with a wealth of knowledge and experience in all things energy, including mergers and acquisitions, tax structuring, and complex debt and equity infusions of capital. We are well-versed in the technical aspects of all forms of financial transactions involving the energy sector, including asset and corporate merger transactions, as well as joint venture and structured finance arrangements. We bring value to our clients on the transaction advisory assignments through the execution of each critically important component we are assigned. More information on our Complex Financial Reporting and Valuation services can be found HERE and HERE.