Hi A J. You are correct . J Gs involvement is probably just about the only reason why VOG are still trading as an independent entity. No doubt considering the money he has put in towards his obligation of the operational costs he wouldn't relinquish his partnership for less than a tidy sum. Well worth paying though if you add up the total sum of all the nuts and bolts and then take into consideration estimated projected figures of revenue and future profitability.
If the SP here stays at a similar level or gets even lower we are imo sure to reach a point soon where a takeover is inevitable. There are plenty of companies who would fit VOG and its gas , assets and revenue snugly into their operational plan. Anything under a pound would mean that a suitor would get VOG lock stock and barrel for next to nothing.
That's a fair point but they would have to find one with representation in the various countries they have subsidiaries in and the tier 2 firms would be equally busy. With the consolidation that's happened in the audit world there isn't a lot of choice any more. I doubt there would be much cost saving anyway or time saving.
JR I agree with what you say, but there is no reason whatsoever that vog need to use a top tier audit company, paying through the nose for the pleasure. It is after all only a relatively small company.
Not sure what you don't agree with. Audits are a statutory requirement. No audits take place on half year accounts and year end figures won't be released until the audit is complete. Most large organisations have December or March year ends and have their audits done in the first 5 months. There is also an international element to VOG require foreign subsidiary audits. VOG has to be fitted in between the BP's and GKN's of this world. It's a few years since I did this sort of work but I doubt it's changed much.
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