A global private equity firm wanted to purchase an Asian offshore oil services company, on the assumption that the target would be able to scale its production capabilities over a five-year investment horizon.
- 10EQS supplemented the PE firm’s Asset Integrity evaluation team with a dedicated Collaboration Manager and two technical experts who had extensive exposure to the industry in general, and to the target in particular.
- The 10EQS team performed an initial on-site inspection in China, and then performed an thorough analysis of data room materials.
- The client gained access to individuals who were familiar with the target in its earlier incarnation as a production company.
- These interviews uncovered various causes for concern that eventually undermined the investment thesis.
- 10EQS provided a critical level of reassurance to the PE firm, confirming the initial suspicion that the target was not worth pursuing.