INTRODUCTION

This GLOMACS training course on Due Diligence is concerned with one of the most important activities in the development of oil and gas business – critical analysis and evaluation of potential investors and partners. The oil and gas industries are becoming more complex in structure, technology, competition and strategic choice.  Consequently a company’s relationships with potential investors and partners now require a significantly higher standard of appraisal and focus than has been the case in the past. This high-level 10-day GLOMACS course will concentrate on the application of leading-edge tools and techniques of due diligence in building effective relationships with these two strategically significant stakeholder categories.

Due diligence is multi-dimensional.  It is based on an understanding of needs and objectives of potential investors and partners; their decision criteria; their compatibility with the strategic and operational objectives of our own company; and finally it requires a structured process by which attraction and integration of new investors and partners can be accomplished effectively in order to sustain continuous improvement in the profitable growth of the company.

This Nordex training course will highlight the following key topics:

• The changing dynamics of the global oil and gas business
• Due diligence in financial appraisal of potential investors and partners
• Due diligence in non-financial appraisal of potential investors and partners
• The specific challenges of partnering in alliances and joint ventures
• Best practice in managing investor and partner relationships

TRAINING METHODOLOGY

The training process is based on a carefully planned combination of highly focused inputs by the seminar leader, using a balanced set of state-of-the-art presentation mechanisms. The emphasis will be on learning by examining major decisions in which the use of best practice principles of due diligence has been critical.  Above all, the principles and approaches to this subject will be illustrated by reference to real-life organisations with which the seminar leader has been personally involved. 

In addition delegates will be encouraged to introduce issues for open discussion and creative thought.  Specifically, we will use the following training methods:

• Presentations by the course leader on tools and techniques of due diligence
• Group work on case studies based on analysis, interaction and discussion
• Focused problem-solving exercises, including “outside the box” thinking
• Interactive discussions of issues that currently affect the company
• Creating personal and team plans for effective application of the semina

WHO SHOULD ATTEND?

This GLOMACS training course is designed to be relevant for a very wide range of experienced professionals – for example the following categories of managers:

• Corporate Finance Officers
• Data Managers and Analysts
• Strategic Planners and Investment Analysts
• Internal Auditors and Management Accountants
• Upstream and Downstream Operations and Supply Chain Managers
• Merger and Acquisition Specialists
• Alliance and Joint Venture Specialists
• Private Equity Specialists
• Asset and Facilities Managers
• Human Resource Managers
• Other individuals whose professional future would be enhanced by an understanding of current best practice in investor / partner analysis and appraisal

MODULE I: Evaluating Collaborative Development Opportunities

DAY 1

The Basics of Due Diligence in Business Decisions 

• The Changing Dynamics of Global Business
• The Strategic Relevance of Due Diligence in Market Analysis
• The Strategic Relevance of Due Diligence in Financial Management
• The Strategic Relevance of Due Diligence in Merger and Acquisition
• The Strategic Relevance of Due Diligence in Business Planning

DAY 2

Due Diligence in Market Analysis  

• Market Analysis (1) – Data Search and Business Intelligence
• Market Analysis (2) – Analytical Tools and Techniques
• How attractive is the market sector that we are evaluating?
• How strong is our performance in this market sector?
• What is the potential for sustainable profitable growth?

DAY 3

Due Diligence in Financial Management  

• Profit and Loss Statement – What this signifies?
• Balance Sheet – What this signifies?
• Cashflow Statement – What this signifies?
• Evaluating the Financial Anatomy – Structure and Gearing
• Evaluating the Financial Anatomy – Robustness and Sustainability

DAY 4

Theme: Due Diligence in Risk Analysis and Risk Management  

• Identification of Types of Risk in this Company
• Quantitative and Qualitative Tools and Techniques of Risk Analysis
• Best Practice in Risk Management – A Structured Process
• The Emerging Concept of “Risk Engineering”
• International Standards and Requirements of Corporate Governance

DAY 5

Theme: Due Diligence in Strategic Planning  

• What is strategy and why is it important?
• Alternative Approaches to Strategic Planning
• Management and Control – dealing with variance and divergence
• Balancing Short-term and Long-term Programmes and Projects
• Example of a Strategic Planning Framework
• Discussion and Plan – How to apply themes 1-5 in your company?

MODULE II: Managing Collaborative Development

DAY 6

Understanding the Requirements of Due Diligence in Investor Evaluation 

• How an Investor Analyses and Evaluates an Investment Opportunity?
• Understanding the Criteria and Approaches of Different Types of Investor
• The Investor’s Perspective – Profitability, Growth, Future Viability
• A Due Diligence Model that Facilitates and Supports our Choice of Investor
• Managing Investor Relations as our Organisation Develops and Changes

DAY 7

Understanding the Requirements of Due Diligence in Partner Evaluation

• The Strategic Rationale for Partnership
• The Various Forms of Partnership
• The Process of Partner Identification
• Financial Evaluation of Potential Partners
• Non-financial Evaluation of Potential Partners

DAY 8

Applying Due Diligence in Evaluating Partnerships 

• Identifying Resources Required – complementary or additional
• Determining the Characteristics of Potential Partner(s)
• Tools and Techniques for Initial Screening
• The Guiding Principle of “Tissue Match”
• Reducing the Long List to a Short List
• Refining the Short-list Process
• Summary of the Complete Process and Agreeing the Short List

DAY 9

Applying Due Diligence in Managing Partnerships  

• The Managerial Differences between a Strategic Alliance and a Joint Venture
• The Process of Agreeing the Business Case
• Negotiating the Terms of an Alliance or a Joint Venture
• Choosing the Most Effective Partnership Structure
• The Life-cycle of the Partnership and the Challenge of Renewal
• Case Examples / Group Case Study

DAY 10

Applying the Complete Seminar to the Needs of the Company 

• Use of Relevant Data and Information to Support Decisions
• Due Diligence in Aligning Strategy and Operations
• Due Diligence in Scenario Forecasting and Strategic Choice
• How to apply themes 6- 10 in this company?
• Discussion – Interaction – Agreeing Priorities for the Company
• Delegates’ Personal Plans for Follow-up Action