Current developments in the energy sector are expected to lead to a new wave of mergers and acquisitions (M&A). Traditional Oil & Gas players will have to adapt (or continue to adapt for the most advanced) their business portfolio to the energy transition, and also to meet the challenges of the recent health crisis. The growth of Renewable Energy could also lead to consolidation amongst the first entrants as the sector matures. The objective of this training is to enable participants to successfully manage their acquisition operations and/or asset sales so that they can best position themselves for the future.
Public :
Oil & Gas, Renewables companies’ commercial, technical, financial managers and support functions staff involved in external growth operations. Public administration decision makers and personnel (industry, finance, energy, environment).
Level :Knowledge
Prerequisite :
Microsoft Excel basic notions.
Some understanding of the basic principles of economic evaluation (discounted cash flows).
Course Content
KEY STEPS & RISKS OF M&A TRANSACTIONS
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Duration : 0.2 Day
The various types of transactions: assets/equity.
The main stages of an acquisition/divestment project.
M&A transactions risks: key success factors.
Key participants in the process.
DETERMINING THE PURCHASE/SALE PRICE
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Duration : 1 Day
The different valuation methods: multiples (comparable transactions, EBITDA, PER), discounted cash flows.
Discounted cash flow method and analysis criteria refresher (NPV, IRR, Payback time). Calculating the residual value/terminal value.
Defining the maximum purchase price (or minimum sale price) taking into account synergies/di-synergies and risks.
Price adjustment options to manage uncertainties/close valuation gaps between buyer and seller.
Taking into account debt.
DUE DILIGENCE & DEAL STRUCTURING
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Duration : 0.4 Day
Preparing an information memorandum.
Risk management. The due diligence process and datarooms.
Choosing the legal and tax structure of the transaction.
Assessing the impact of competition laws.
NEGOTIATIONS & KEY CLAUSES OF SALE & PURCHASE AGREEMENTS
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Duration : 0.4 Day
Pros and cons of the various sale methods: auctions, negotiations.
Counterparties’ assessment.
Conditions/ precedents.
Commitments and guarantees.
Completion adjustments.
Learning Objectives
Attendees will be able to implement the following skills:
Lead/contribute to an M&A project through a structured process,
Evaluate assets to buy or sell using different methods (e.g.: multiples, discounted cash flows).
Ways & Means
Exercises.
Analysis of recent transactions.
Case studies: setting the maximum purchase price.
Case study: Critical review of a sale and purchase contract clauses.
Quiz.
Learning assessment
Participants will be evaluated throughout the training through exercises, cases and a quiz.
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Coordinator :IFP Training instructors, with expertise in the field and trained in modern teaching methods adapted to the specific needs of learners from the professional world.
To French entities : IFP Training is referenced to DataDock ; you may contact your OPCO about potential funding.
Please contact our disabled persons referent to check the accessibility of this training program : referent.handicap@ifptraining.com
IFPT Account
