Carve-Out + IPO Preparation Services for Upstream Oilfield Services Company
Riveron’s Client, a $10 billion U.S. oilfield services company, planned to divest its land drilling rigs business in a publicly announced spin-off. Riveron was engaged to provide financial statement carve-out assistance and audit preparation services in preparation for a sale of the carve-out entity. Additionally, our team was asked to document the entity’s internal control processes and monthly financial close process to support stand-alone operations.
We kicked off the engagement by developing a step-by-step approach designed to identify transactions specific to the rigs business entity involved in the spin-off. This approach was used as the scoping guide for each financial statement line item and footnote disclosure essential to the annual financial statements.
Working closely with the Divestures and Acquisitions team, Corporate Accounting, and Field Accounting teams in over 30 countries throughout the project, Riveron helped to establish an autonomous financial reporting function for the new entity.
Additionally, after our team identified and resolved several financial reporting issues, we trained Field Accounting personnel to standardize reporting and circumvent issues in the future. We acted as a liaison between the Client and the Auditors by performing technical accounting research, serving as the project manager, and drafting the financial statements and related disclosures.
Benefit to Our Client
Riveron’s expertise and additional resources helped the Client develop and maintain a process to construct carve-out financial statements required for marketing to prospective buyers. The methodologies and tools that we built accelerated the close process for the carve-out entity, standardized financial reporting across numerous international legal entities, and increased the accuracy of the overall financial statements for the entity. The end result was that the Client was provided carve-out financials timely, and, the Client had a higher level of confidence that transactions were recorded accurately.