Protiviti helps oil and gas giant optimize processes following a US$12 billion acquisition

573 views

Published on

A global mining, oil and gas company acquired a competitor with natural resource holdings and legacy production units valued at more than US$12 billion. After the acquisition, the company’s internal audit function discovered serious issues in the newly acquired company’s inventory and warehouse management processes. In addition, internal audit determined that the acquired company’s legacy units had minimal formalized procedures for processing invoices and financial reporting.
The company called on Protiviti to redesign the company’s accounts payable (AP) and materials management (MM) functions.

Published in: Business
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
573
On SlideShare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
2
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Protiviti helps oil and gas giant optimize processes following a US$12 billion acquisition

  1. 1. Protiviti helps oil and gas giant optimize processes following a US$12 billion acquisition Transaction Services – Mergers & Acquisitions Client Challenge A global mining, oil and gas company acquired a competitor with natural resource holdings and legacy production units valued at more than US$12 billion. After the acquisition, the company’s internal audit function discovered serious issues in the newly acquired company’s inventory and warehouse management processes. In addition, internal audit determined that the acquired company’s legacy units had minimal formalized procedures for processing invoices and financial reporting. The company called on Protiviti to redesign the company’s accounts payable (AP) and materials management (MM) functions. POWERFUL INSIGHTS We assembled a team of experts in acquisitions, change management, procurement and MM to understand the root causes of the issues identified by our client. As part of the discovery process, we mapped our client’s current state AP and MM processes across all production units and identified process and control gaps that were resulting in unreliable inventory reporting. We also performed a diagnostic of current AP processes on a transaction level to prioritize areas for increasing effectiveness and efficiency. We then helped our client define and optimize processes for its companywide AP and MM functions. Our standardized future state policies, work instructions and process maps helped the company articulate the changes necessary at each production unit to address gaps and deficiencies. We also assessed our client’s existing information technology systems to identify which applications and configurations would best enable the future state requirements. To ensure these new processes would be utilized across the company, we also developed training materials and assisted our client’s project management office leader with the companywide process rollout. PROVEN DELIVERY We helped our client optimize its US$12 billion acquisition through the following activities: • • • • Developed standardized, repeatable processes for all production units by creating detailed documentation and training materials Increased the efficiency of the client’s AP function by reconfiguring its ERP system for optimized invoice processing Built a more robust infrastructure for the MM function by configuring a new ERP application to maintain up-to-date count and valuation records Validated the accuracy of inventory levels through independent physical inventory counts
  2. 2. How We Help Companies Succeed Protiviti’s mergers and acquisitions (M&A) consultants help organizations evaluate the financial, commercial, regulatory, and technological situations of potential merger candidates and understand the opportunities and challenges that may arise from a merger. M&A transactions are among the most complex activities a business can undertake. In today’s global market, where not all information is transparent, these transactions present an even greater challenge. Companies include a substantial part of their value creation/synergy targets in the acquisition purchase price. Due to expected future defaults and economic issues, management – more than ever before – wants to quantify the risk of not being able to meet these targets. Our M&A team includes auditors, former regulators, forensic accountants, and change management and technology experts who provide investigative analysis of businesses including background history, results/projections, cash flows, market analysis, management information, commercial and operational issues, and systems and controls. Our experts also help clients make the most out of the unexpected challenges that are common after an acquisition. Companies with any of the following indicators will benefit from our services: • • • • • Planned or contemplated acquisitions or divestitures Need for assessment of finance and accounting processes and systems Lack of liquidity and/or need for capital or refinancing Need for assessment of information technology infrastructure Need for post-acquisition change management and integration Contact Contact Byron Traynor +1.786.264.7166 byron.traynor@protiviti.com Jim Ryan +1.314.656.1745 jim.ryan@protiviti.com About Protiviti Protiviti (www.protiviti.com) is a global consulting firm that helps companies solve problems in finance, technology, operations, governance, risk and internal audit. Through our network of more than 70 offices in over 20 countries, we have served more than 35 percent of FORTUNE 1000® and FORTUNE Global 500® companies. We also work with smaller, growing companies, including those looking to go public, as well as with government agencies. Protiviti is a wholly owned subsidiary of Robert Half (NYSE: RHI). Founded in 1948, Robert Half is a member of the S&P 500 index. ©2013 Protiviti Inc. An Equal Opportunity Employer. PRO-PKIC-1113-110 Protiviti is not licensed or registered as a public accounting firm and does not issue opinions on financial statements or offer attestation services.

×