14 Apr The Reality of Merger and Acquisition Partnerships
In the Energy Sector, the possibility of creating shareholder value has raised the chance of utilizing an M&A partnership to strengthen the space’s financial future and sustain attractive performance through cycles.
Reorganization for Digital Transformation
M&A transactions have resulted in major changes within firms in recent years, both through business transitions and digital transformations. For organizations that are trying to accelerate their digital transformation, M&A has been useful in improving performance and accelerating digital transformation efforts: By expanding access to new markets or adding a revenue stream of customers with needs that differ from existing clients. Additionally, many firms grapple with fluctuating customer preferences as a result of a constantly shifting market landscape, and in order to remain competitive, business models are being modified now more than ever.
The agility of a business to reinvent itself and seize new opportunities to generate new revenue streams determines its place among the competition. Technology accelerates this process, offering value with increased brand awareness, revenue, and the organization’s long-term competitive edge and success.
Breathe New Life Into Business Portfolios
After pivoting business amid the recent market turmoil, corporations find they are relieved to be able to focus once more on identifying new growth opportunities.
As they enter expansion mode, the recent spike in strategic partnerships and buyouts emphasize maximizing synergies with dual benefit: this provides new development opportunities, while also freeing assets locked in legacy enterprises that are no longer performing optimally. Corporations find they can secure a higher return on investment via company transformation, resulting in remarkable strategic growth.
Three important components contribute to the success of any M&A partnership strategy
1. Evaluate the company’s current position
Is your business considering strategic growth? Start by assessing your corporation’s vision and mission. In doing so, be sure to conduct an ESG analysis to have a better understanding of your operational environment. Environmental, social, and corporate governance (ESG) is a framework for assessing trends and the extent to which a business works for societal purposes that extend beyond the organization’s primary function of profit maximization for its shareholders.
2. Determine the capabilities it lacks in areas of increasing demand
Second, corporations must identify and select targets that align with their strategic objectives. Start by examining your corporation’s weaknesses or areas lacking in zones of rising demand to determine what is required to fill those gaps.
3. Articulate how M&A can help it compete
Finally, analyze whether a business transition opportunity exists – including how to finance it and how to sell it to shareholders. Corporations should develop an action plan for each phase of M&A integration, complete with milestones. These measures will guarantee that when a business considers entering into an M&A partnership, it has a clear understanding of what lies ahead.
Sirius has been helping support transactions in the Energy Sector since 1998.
We focus on these four key areas:
Sirius Solutions has been serving the energy space since inception almost 25 years ago, and has supported the energy sector through multiple downturns throughout the 1990’s and 2000’s.
Sirius has expertise serving clients in all the subsectors including:
- Upstream
- Downstream
- Midstream
- Alternative Energy
We provide Transition Services that you can rely on while mitigating risk as we plan a transition or carve-out that results in a sustainable operating model. No matter what stage you’re at or how many questions you have, our skilled professionals give hands-on assistance from start to end.
Our Areas of Expertise in Transition Services include:
- Negotiation & structuring of transition service agreements
- Transition planning
- Day 1 readiness planning & execution Roadmaps
- Cash settlement & establishing treasury management
- Data migration & cleansing
- System selection & implementation
- Organizational design & establishment
- Interim operations to insourced or outsourced functions
As former industry senior executives and trained professionals, our teams are performance focused and understand the complexities, nature and timing of our clients’ unique business challenges
At Sirius Solutions, we tailor solutions for individual clients. We are guided by a philosophy that ensures our clients get the requisite value needed in post-transition. We are proud of our consistent outcomes in our transition processes due to our experience and understanding. Check out just a couple of our success stories below:
Success Stories
Finance And Accounting Organization Creates Scale for Growth
Concerned that their business strategies would double the organization’s cost, we provided recommendations on strategic vs. non-strategic areas to focus on, thereby creating scale for business growth.
An Independent Exploration and Production company Becomes SEC-compliant after Merger on a Budget
After a successful merger, the client lacked the resources needed to be SEC-compliant on a budget. We worked with the company efficiently on the required timelines, setting them up for future success.
Ken Pujats, Director – Sirius Solutions
Contact us to learn more about our client successes with Managing Transitions and learn more about how we can support you with your own transition needs.