Strategic Transformation and IPO readiness for an Industrial services contracting group

The challenge

A newly acquired shareholder in a leading oil & gas contracting and services group aims to increase value and achieve a higher IRR through organizational transformation, revenue growth, and higher profitability. Despite strong market positioning, high asset utilization (75%), and a robust client portfolio, the company's return on investment remains low. The business had a turnover of 80M USD and employed more than 2000 people.

The goal is to restructure for stock exchange readiness while driving sustainable expansion.

Solution

An institutionalization program was developed to enhance shareholder value and improve IRR. We facilitated multiple meetings and workshops to establish a clear strategic direction, defining the optimal business focus, service offerings, and market positioning to maximize profitability and generate sustainable future cash flows. Simultaneously, we designed a robust financial strategy that included balance sheet restructuring, bank debt optimization, and a comprehensive evaluation of the client’s business processes.

Implementation

Several key initiatives were executed simultaneously, focusing on strengthening corporate governance and optimizing operational efficiency. This included designing policies and procedures, establishing authority and responsibility matrices, reshaping the organizational structure, optimizing costs, and developing balanced scorecard frameworks. Additionally, the rapid implementation of a new ERP system introduced significant challenges in securing bank financing, requiring proactive engagement with financial institutions. Advanced pricing techniques were developed, certain services were spun off while others were expanded, and new offerings were introduced to enhance cash flow generation. Meanwhile, communication with regulatory authorities was initiated to support IPO readiness.

Achievements

The client successfully secured more bids and high-margin projects, leading to increased cash flow and improved asset utilization. The digital transformation facilitated better decision-making and optimized cost structures.

Over three years, sales surged from $80M to $250M, workforce expanded to 5,000 employees, and profitability reached double-digit millions. The IRR rose from 7% to 23%, reflecting substantial financial improvement.

Simultaneously, the company restructured its legal framework, ensuring financial and operational governance aligned with publicly listed company standards. However, the IPO was postponed due to strategic considerations, primarily influenced by external market factors, including the decline in oil prices back to 2015 levels and industry-specific challenges affecting listed contracting companies at the time.