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Why leave the settlement statement to the seller?

The seller typically prepares post-closing adjustments. But do they conduct a detailed review of supporting data? Not likely. We do. An independent, buy-side final settlement statement review is where we find inaccuracies and costs inappropriately passed to the buyer. Even better: the seller acceptance rate for our findings is higher than 90%.

Do final settlement reviews deliver hard-dollar results?

Yes. Well, ours do. Our final settlement statement reviews identify findings within 1% to 4% of reviewed transactions. One way is by meticulously verifying the date each service was performed, rather than the invoice date or accounting month. Specifying service dates is a manual task. It’s time-consuming. But it pays off. 

It’s in the details. What our post-closing review covers.

A laser focus on the source data for transactions is what takes our final settlement statement reviews to another level. Our post-closing review will ensure that:

  • Expenditures incurred prior to the effective date are for seller’s account.
  • Revenues after the effective date are for buyer’s account.
  • Annual costs are pro-rated properly between buyer and seller.
  • Corporate costs not specific to the sold property remain seller’s responsibility.
  • Transition period fees are charged accurately.

Practice Leader

Photo of Pettit, Paul

Paul Pettit

PRODUCT SHEET

Do you want to maximize the value of your acquisition? Our Final Settlement Statement Review guarantees savings.

Frequently Asked Questions

What is a final settlement statement in oil and gas? Following the closure of an oil and gas acquisition, the final settlement statement serves as the accounting document that finalizes purchase price adjustments stipulated in the purchase and sale agreement. It allocates revenues, expenditures, and prorated costs between the buyer and seller as of the effective date.
What does a final settlement statement review cover? Final settlement statement reviews address incorrect pre-effective-date costs, allocation of annual costs, corporate expenses that should remain the seller's responsibility, transition period fees, and duplicate charges.
Who prepares the final settlement statement? The seller typically initiates the process. The buyer then has a specified timeframe under the PSA to review and dispute any adjustments, which underscores the importance of an independent review of the supporting data.
What's the difference between the closing settlement statement and the final settlement statement? The preliminary settlement statement at closing uses estimates. The final settlement statement, prepared months later, trues up actual revenues and costs around the effective date. That true-up window is when an independent review pays off.