Turmoil in the oil & gas business has triggered a new wave of M&A activity—including private equity firms looking for bargains. But even at attractive valuations, oil & gas assets can come with unexpected risks and high costs.
New owners of carve-out assets typically need to stand up new IT systems quickly, for example, or continue to pay for IT services under costly transition services agreements. In the extreme, shortcomings can prevent timely payments to stakeholders, sparking litigation and even bankruptcy risk.
KPMG helps private equity leaders and other acquirers understand and manage these and other hidden risks before they take the plunge into oil & gas or expand in the sector. In this brief white paper, we share our insights about how to assess critical IT systems before making an offer, prepare for Day 1, and stand up or transition systems after a deal is signed.