After decades of acquiring proprietary benchmarking data, Solomon knows more about most of the world’s energy assets than any other outside consultant. Assess the risks, opportunities, and needs in mergers and acquisitions.
In good times and in bad, transactions, M&As, and asset divestitures are key components of an asset allocation strategy. A thorough and proper examination of assets provides an essential projection of future financial upside and helps a prospective buyer more fully understand the potential benefits, liabilities, and constraints associated with the transaction. What if the information to which you had access was on a different level than current, publicly available data? How might that information and insight impact your decisions?
Solomon’s historic database of non-public data across a broad range of assets—on top of our industry-trusted comparative performance data, methodology, and deep industry experience—provides needed assurance and risk mitigation to both buyers and sellers. A complete examination relying on this level of data reduces risk and increases the probability that a portfolio addition will deliver the anticipated long-term value for the business. Sellers can also highlight how their asset might justify a price that appropriately reflects the true value.
We provide a fair-market-value analysis. Our objective asset evaluation uses real data from petroleum refineries and petrochemical plants, pipelines and terminals, power generation facilities, onshore/offshore production facilities, gas processing and LNG plants, and NGL fractionation plants.
Acquisition and Divestiture
Learn how non-public comparative performance data can enhance your
fair-market-value analysis.
Moreover, Solomon’s fair-market-value analysis provides both buyers and sellers with figures to back a lucrative price that appropriately reflects market value. Our objective asset evaluation uses real data from petroleum refineries and petrochemical plants, power generation facilities, pipelines and terminals, onshore/offshore production facilities, natural gas processing and fractionation plants, LNG plants and natural gas transmission systems.
In order to compare assets of differing sizes and complexities, Solomon employs our proprietary EDC® metric. EDC® factors have proven to be statistically superior to Replacement Value-based comparisons, providing clients with the highest accuracy when comparing potential acquisitions. For evaluating power generation facilities specifically, Solomon employs our patented Solomon indicator, Equivalent Generation Complexity (EGC®), as part of our asset evaluation analysis. The EGC® indicator normalizes installed equipment impacts, age-related impacts, utilization-related impacts, etc., all of which are cost-drivers between various block configurations in power generation facilities.
Our consultants average 25+ years of knowledge and experience across a wide range of industries and technologies. We conduct deep and thorough assessments of those assets and equipment classes using Solomon’s world-class benchmarking tools and databases, including Comparative Performance Analysis™ (CPA™), Performance Improvement Opportunity Assessment, and Q1 Day 1™ services. We also have access to the world’s largest equipment breakdown insurer database from HSB, part of Munich Re.
Why Work With Us For Your Transaction Advisory Services?
- Identify acquisition strategies and targets including estimating profit potential
- Negotiation support, pre- and post-acquisition support
- Due diligence support teams
- Cash flow analysis
- Benchmarking and competitor analysis
- Optimization modeling
- Performance improvement and assurance services