Every year, approximately $300 Billion in energy assets change hands (are bought, sold, or merged).
Prior to these assets being transacted, the client (banks, private equity groups, hedge funds, investment banks, venture capitals, foundations, endowments, sovereign wealth funds, lending institutions, governments, energy companies, US SEC, Individuals, etc) usually commissions a third party evaluator to determine the asset’s value.
Here is the problem:
An Oil & Energy asset is to be bought or sold:
- The investor or energy company takes the asset to Valuator A for an expert opinion or reserve report. Valuator A says asset is worth, for instance $100 Million.
- Take the same asset to Valuator B. Valuator B says something different, say $300 Million.
- Take the same asset to Valuator C. Valuator C says something entirely different, say $50 Million.
Different firms have different valuations for the same asset.
Why These Huge Differences in Valuations?
- Biases and Special Interests: The reports are sometimes biased because they serve special interests.
- Angle: these valuators have an angle that benefits them, and those they represent.
- Conflict: These firms are sometimes conflicted: they prepare the reports, and at the same time help the client raise money, using the same reports they prepared. Conflict.
The Alzare platform intends to correct this by levelling the playing field. How?
- For the above reasons, there exists a need for a more independent, unbiased, equitable, accessible, and affordable methods and systems for energy asset valuation.
- A need to create a universal, and centralized online system for asset evaluation, that is accessible to, and by all potential players (investors, operators, sellers, buyers) in the energy industry.
- Potential assets for mergers, acquisitions, divestments, or dispositions will be uploaded to this online Alzare platform (by buyers, sellers, financiers, the public, governments, etc).
- Qualified and well-vetted energy Subject Matter Experts will review the asset and upload multiple independent reports (expert opinions) on that particular asset.
- Customer gets multiple reports on their asset, which are independent and unbiased, confirming true asset value, guiding customer's purchase or sell decision.
- For instance, five subject-matter-experts report on an asset. The first says its value is $100MM, the second says $105MM, the third says $94MM, the fourth says $103MM, and the fifth says $400MM. The first four are within range. The fifth is amiss and suspect!
- Such a tool is a game changer. It is invaluable to the buyer and prevents hyper-inflation of assets and overpayment. Levelling the playing field!
- Certainly, these professionals will be paid a fee for their review, by Alzare.
How It Works
Do You Have An Asset You Want Evaluated Or Reviewed? Are You Going Through An Acquisition, Divestment, Merger, Disposition, Or Restructuring? Let The Experts Tell You What Your Asset Is Worth. Compare Multiple Opinions For The Same Asset.