Our client, a highly entrepreneurial private equity consortium, had successfully acquired a major midstream gas distribution business in Nigeria. However, acquisition success came at a high transaction value. The organisation was now required to achieve a step-change in performance to deliver investment return.
To deliver sufficient cash return to the investors, as well as address the business’ recent flat growth, Gas Strategies partnered with the client and management team of the acquired business to develop a business strategy that will deliver transformative growth and maximise enterprise value.
Targeted opportunities and an organisation built to deliver
We worked with the investors to define a clear vision for the business in the context of energy evolution in the country, and a rigorous set of criteria to prioritise opportunities capable of delivering transformational growth.
We then re-evaluated the company’s development pipeline, focusing on opportunities with the scale and strategic fit to materially impact enterprise value. Through this process we aligned the strategy with a critical shift in Nigeria’s energy market – from off-grid captive power to large-scale power – and repositioned the growth strategy to focus on capitalising on the timing of this transition.
We translated this into a focused growth strategy, including a prioritised portfolio of opportunities and three investment scenarios, each with defined Capex and EBITDA outcomes. The strategy also set out the organisational changes and practical next steps required to deliver these outcomes.
Delivering a compelling enterprise value story
Our client now has a focused portfolio of high-impact growth opportunities, with a clear pathway to doubling EBITDA by 2030 relative to the previous business plan, and a compelling equity story to support future financial leveraging of their investment.
We also defined the critical organisational changes required to deliver this growth, alongside a practical execution roadmap, enabling the business to scale new opportunities while maintaining core operations. Gas Strategies continues to engage with the client in supporting implementation of the growth strategy and decisions around future financial leveraging.