Understanding the business functions of a newly acquired business enterprise

INDUSTRY: LPG

SERVICES: OptimaCore – Business Optimizations & Transformation

Client need

A major Eastern European conglomerate operating across multiple industries and continents ventured into the oil and gas market by acquiring an LPG terminal located in one of Eastern Europe’s busiest ports.

While extensive due diligence was performed during the pre-acquisition phase, the client required an in-depth and comprehensive understanding of the terminal’s business operations.

Their objectives included identifying potential losses, uncovering safety or technical issues requiring urgent intervention, and evaluating untapped business opportunities left by the previous owners.

One page solution:

Our innovative approach concludes complex reports and detailed analysis, into a concise one-page diagram that provides a full overview.

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The solution

APPROACH

Recognizing the complexity and scale of the client’s needs, Interdiligence deployed a multidisciplinary project team composed of field agents, mechanical, electrical, metrological, safety, and security specialists, as well as IT engineers. The team conducted extensive on-site assessments and leveraged a variety of investigative methods:

  • Site Inspections: Field agents performed comprehensive day and night operations assessments, capturing real-time video and photo evidence, while conducting formal and informal interviews with local staff, contractors, and neighboring businesses.

  • Technical Forensics: IT engineers carried out a forensic review of the terminal’s technical platforms, pipelines, and metering systems to evaluate operational efficiency and uncover discrepancies in flow registration.

  • Financial and Contractual Analysis: Financial analysts and economists, with access to company records by the client, meticulously examined financial statements and contracts to assess performance and identify inefficiencies.

  • Supply Chain Profiling: Forensic agents analyzed the supply chain, profiling vendors from legal, financial, and reputational perspectives. This included evaluating the historical relationships between vendors and the terminal.

Deliverables

Interdiligence synthesized the findings into a detailed report and a professionally designed pitch deck.

Central to the deliverables was the Risk & Opportunity One Page Solution Pictogram, a color-coded visual tool that provided unparalleled clarity. This concise diagram highlighted:

  • Short-, mid-, and long-term risks
  • Actual financial losses and mitigation strategies
  • Immediate and long-term business opportunities

The Impact

Interdiligence’s tailored solution empowered the client to make swift, data-driven decisions that significantly optimized operations and mitigated risks. Key outcomes included:

1. Cost Optimization: The client reclaimed services previously outsourced to two contractors, resulting in monthly savings between €100,000 and €300,000.

2. Technical Upgrades: Emergency replacement of critical metering equipment significantly enhanced the accuracy of LPG flow registration, reducing revenue leakages.

3. Infrastructure Improvements: Immediate improvements to piping and storage systems averted potential operational accidents and costly shutdowns.

4. Strategic Planning: The findings served as the foundation for a growth management plan, enabling the client to chart a path for sustainable development within the oil and gas sector.