Corporate Finance, M&A and Due-Diligence Auditing Experience

Major European port’s berths acquisition
• For a major globally operated oil and bunker company directed berths’ acquisition feasibility and whole supply-chain assessment from inland depots and refineries to portal proximities.
• The total due-diligence involved financial, tax, marketing and risks appraisals of existing operations, VCA analyses, examining all present and future financial commitments to the new owner, including both historical and transparent transactions with future course of actions benefiting the buyer.

• The investigation showed the degree of investments and financial/legal and licensing mechanisms needed to upgrade assets and the property’s commercial viability within supply-chain scale.
It allowed the buyer to negotiate the right project finance conditions minimising initial capital outlay and increasing the cost-effectiveness of the whole marketing and operational infrastructure.

Acquisition of Mediterranean’s petrol station network
• For a big international corporation administrated detailed due-diligence on acquiring 29 petrol stations from Exxon/Mobil and BP.
• From a legal stand point there was an evaluation of litigation matters, leases, operating licences, the dealers’ licence agreements, supply and throughput contracts with suppliers, franchising, transportation and maintenance agreements.
• Financial review involved auditing financial statements, management accounts, sales volumes, burn rates per month, margin calculations, dealer analysis with staff payroll. Also assessed the capital required for renovation.
• In depth marketing and commercial examination covered capability and robustness of all supply-chain operations.
Based on valuation scenarios, payback period and realistic marginal net profit there was obtained a fair and equitable price, with upside potential for the investors

Oil and gas field acquisition
Participated in oil-gas field valuation, managing audit and technical/commercial/legal due-diligence with the estimated amount of US $ 1 billion. The appraisal involved:
• Ultimate recovery using current production techniques and equipment
• Future cost of operation, given steam flood and high work-over frequency, and current very low cost experience
• Netback prices, given the low quality of the oil and potential for quality bank implementation in major export routes; plus, uncertainty factors in the future commodity prices for market crude such as Brent
• Applicability of comparison sales, the future field expansion DCF for current valuation.
Using the results of the due diligence, a Monte Carlo model was developed for DCF returns that considered key factors such as production profile, ultimate recovery factor, operating costs, crude oil prices, and netback / quality discounts. The outcomes provided a range of estimated values for the field.

Small refinery acquisition
For an international consortium producing sour gas and gas condensate from one of the world’s largest condensate fields he undertook due-diligence review of the prospects for acquiring and upgrading processing facilities examining the following:
• Historic and current trading/processing deals, assessment of debt and obligations
• Financial analysis of current and potential future trade outlets for products, net assets, cash flow and forecast review
• Management and personnel control with accounting systems
• Legal and taxation matters including provision of preferential treatment for capital gains taxes for foreign investors
Delivered technical assistance and recommendations on an appropriate course of action adding various financial performance topics; this included classification and measurement of financial instruments, hedging, recognition and derecognition of financial assets and liabilities, impairment, fair value measurement

Risk Management Experience

• Completed Marketing Risk Management Assessment evaluating political, taxation, production, legal and commercial issues, and analysing control criteria on impact, probability and estimated costs on the value chain of upstream and downstream activities
• Analysed key corporate risks and put mitigation approaches in place of M&A deals including hidden debt / liabilities, incurred under the seller’s preferred route of amalgamation of the owner’s company such as intention to reduce the seller’s capital gains taxes
• Developed a risk plan to partially exit with a future liquidity event that returns a substantial reward to investors
• Assessed control framework by identifying major underlying risks and their management by the corporate and financial institutions


Marketing and Operational Management

Overall covered corporate finance administration of five interdependent business units:
1. Crude, condensate and oil product export / cargo trading
2. Oil production – upstream activities
3. Refining and processing – oil products’ marketing and distribution
4. Imports of chemicals, plastic materials, machinery & spares for gas-oil industry
5. Contracting management under tender participations with the sales and procurement from various
sub-contractors/suppliers to government and corporate organisations

Annual consolidated turnover under direct responsibility: ca. US $ 200 million. Financial transactions and deals in excess of US $ 5 million.