Edge Liability Risk Management (“Edge”) has developed an innovative solution to complete M&A transactions that may have been previously rejected due to environmental liability or Licensee Liability Rating and Liability Management Rating (“LLR/LMR”) concerns.
Until now, Edge has focused its efforts on the sell side to help sellers realize higher sales multiples on properties and shed liability. Recently Edge has seen a significant uptake in interest from buyers who are looking to take on liability-ridden properties and clean them up. The market is right for taking on strong cash flowing assets at historically low valuations. Buyers are getting wise to this and looking for properties that fit this description. However, with these assets comes potentially substantial Asset Retirement Obligations (“ARO”). This is where Edge plays a key role in making these transactions a reality.
Managing ARO for Buyers:
- Experience: Edge team has over 150 years of oil and gas and risk management experience.
- Protecting Your Capital: Edge has developed a risk management program that gives cost certainty and budget control for all ARO programs.
What are we looking for?
- Previously stalled transactions due to environmental liability or Licensee Liability Rating and Liability Management Rating (“LLR/LMR”) concerns.
- Meaningful ARO.
- Strong cash flow with low decline rates.
To learn more about how Edge can transact on these types of properties, please see our website www.edgelrm.com and contact us today.
Greg A. Sawchenko
VP Business Development
Edge Liability Risk Management