Red Flag Reviews
RPS' Gordon Taylor discusses Merger & Acquisition activity post-COVID-19 and how a Red Flag Review can provide you with the right technical information to inform your investment decisions.
24 June 2020 | 1 min read
Our energy team has significant experience in providing the full spectrum of transaction support, both buy-side and sell-side. Many of the team have held senior roles with major international operators. They have decades of oil and gas expertise, with a diverse range of skills covering any aspect of the potential transaction so you can be confident we can provide a fully integrated team that supports your specific transaction objectives.
Our sell-side support includes collating data for the assets (or company) to be sold, managing your data and building the sales case, preparing an Information Memorandum, hosting physical and/or virtual data-rooms, bid assessment and negotiation strategy and support.
We also have a wealth of experience in buy-side support, with over 50 data-rooms/evaluations completed globally in the past 5 years, on assets with a combined estimated value in excess of US$10 billion.
We offer a two-phase approach to due diligence:
The red flag review is intended to act as an initial screening tool for clients. The review identifies any aspect of the asset or transaction that may prevent the client from moving forward or any aspect that has significant risk with potentially serious consequences. It will classify any issues identified using a traffic light scheme, including areas that require further due diligence or which may require additional data to be made available in order to evaluate uncertainty or risk fully. The review can encompass all aspects of an asset, from sub-surface to export facilities and will sense check the feasibility of any proposed or planned field (re)development.
Detailed due diligence builds on the initial red flag review. It enables a deep dive into the potential transaction, during which our multidisciplinary teams can address a wide range of technical and commercial aspects. Additionally, we can review any health and safety issues and the environmental, social and governance (ESG) credentials of the asset or vendor. If required, we can provide an independent commercial valuation of the asset.
All due diligence exercises are carried out by the same teams that have extensive experience in preparing reserves reports or Competent Person’s Reports. As a result, the information gained during the due diligence can be incorporated into such reports if required, compliant with any of the major global stock exchanges to assist you in raising finance for the transaction.