Case Study: Helping a Private Equity firm buy the gas subsidiary from a major petroleum and grocery distribution outlet
Industry: Financial Services
Company Type: Private Equity
The Challenge
The Private Equity firm (Buyer) needed technology due diligence to complete the purchase of a major oil and gas subsidiary (Asset) from a significant petroleum and grocery distribution outlet (Seller). The sale could not go through unless the Buyer and Seller were satisfied that the Asset could be separated without drastic technological consequences.
The Discovery
The oil and gas company was a subsidiary with multiple business processes deeply integrated with its parent company, complicating the acquisition for the Buyer. The co-dependence of IT architecture and software contracts between the subsidiary and Seller threatened the deal from closing. The Private Equity firm wanted to integrate the Asset with other oil refinery and distribution businesses it was purchasing to form a conglomerate entity.
The Solution
Boston BizTech created a business process diagram allowing the Private Equity firm to visualize the entire business workflow and how additional acquired oil refinery and distribution businesses will integrate and overlap. We negotiated and resolved all software contract conflicts. In addition, we designed a new IT architecture, replacing the technology stack lost from the separation of the Asset from the Seller.
The Impact
The oil and gas subsidiary was successfully acquired, meeting all contractual deadlines. Boston BizTech helped surgically remove the subsidiary from the Seller. We validated the business process workflow and technology stack for additional acquisitions integrated with the Private Equity firm to form the new conglomerate.