Capturing clients earlier in the project lifecycle to stay competitive in oilfield services
Our client, an international steel company, was losing market share due to pricing, availability and a move towards integrated contracting. They were considering increasing their service offerings through acquisition to enhance their technical capability and to gain an inside track on upcoming projects. There was some internal uncertainty as to whether acquisition was the best option, and whether the target company was a good portfolio fit. WSS Energy were initially engaged to review their M&A strategy and to conduct commercial due diligence on an acquisition option.
Related Consulting Services
Business case development
Voice of customer
WSS ENERGY'S APPROACH
Using our knowledge of the target market structures we quickly realised that the acquisition was likely to carry considerable risk and was unlikely to unlock the benefits that the client anticipated. Our proprietary insights into E&P contract structures and trends showed that the underlying challenge was that the client was too far from the customer for the differentiated value of their products and services to be recognised.
Voice of customer interviews
Areas for improvement identified by the customers
Defined the business case for M&A considering operational, cultural, technical and commercial factors to allow the acquisition target to be assessed against consistent and agreed performance metrics
Light-touch commercial and technical due diligence on the acquisition target and comparison with similar segment companies from WSS Energy’s internal database to create a relative value proposition for the acquisition
Interview program with current and potential clients to test the value proposition and identify risks and uncertainties from a client perspective. Financial modelling of the acquisition under three value proposition-based scenarios
Identify alternative business growth opportunities through a market and competitor assessment of five key markets to identify how the client could better compete for strategic clients under integrated contracts.
Value chain mapping of growth opportunities to identify “where to play”, development of partnering and collaboration options to fill capability gaps