Technical Due Diligence of Industrial Assets
INVESTMENT SECURITY THROUGH TECHNICAL CONDITION ASSESSMENT WHEN PURCHASING INDUSTRIAL ASSETS
The purchase and sale of existing industrial assets are associated with considerable financial risks due to a variety of influencing factors. Potential purchase or investment objects must be analyzed in detail regarding strengths and weaknesses in order to understand which future opportunities and risks a purchase offers and which investment sums are necessary. During a due diligence review, all relevant factors that may have an impact on the profitability of the investment project are examined. In this way, possible risks can be identified before the final investment decision is made and the feasibility of the project can be ensured.
ENSURING THE FEASIBILITY OF YOUR PROJECTS - extensive KNOW-HOW & TECHNICAL EXPERTISE IN THE ASSESSMENT OF INDUSTRIAL assets
Especially when investing in complex industrial facilities in the oil & gas, chemical and other heavy industry production sectors, an accurate condition and risk assessment is critical to the profitability and technical feasibility of the project. The higher the technical complexity and the size of the asset, the more costly an accurate assessment turns out to be.
Depending on the strategic orientation of your company, the market environment and the respective context, different focal points can be set for the technical due diligence review. This ensures that your individual TDD audit requirements are met throughout the project. In addition to TDD audits for industrial facilities, Bureau Veritas can assist with Technical Due Diligence for real estate.
YOUR GLOBAL PARTNER FOR TECHNICAL DUE DILIGENCE - OUR SERVICES AT A GLANCE
With a network of experts in more than 140 countries, we support companies with a comprehensive portfolio of services for their investment projects. Typical services we provide as part of a technical due diligence review include:
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Data Room Analysis
- First review of all available information
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Red Flag Report
- First screening to identify significant risks
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Data analysis & risk assessment
Detailed evaluation of all available data - based on the Red Flag Report - for a complete risk assessment of various aspects of the industrial plant (due diligence review), e.g.:
- Plant and maintenance condition
- Safety and health aspects
- Environmental, social and governance (ESG) concerns of the facility or supplier
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Other valuation methods
Further evaluation of the industrial plant in terms of:
- Quality and condition assessment of the equipment and intangible assets such as, patents, licenses, etc.
- Analysis of OPEX, CAPEX and dismantling costs
- Future costs for maintenance and servicing of the plant
- Investment needs and required reserves
- Estimation of future capacity and performance
- Operational processes and organization
- Future competitiveness
- Permits and conditions
- Environmental management, contaminated sites and contamination
PROCESS OF A TECHNICAL DUE DILIGENCE EXAMINATION OF INDUSTRIAL FACILITIES
A TDD review of technical assets is a detailed representation of the current state and provides a high degree of transparency. Technical condition assessments as part of a due diligence audit are mostly necessary in the case of acquisitions/purchases of non-company assets or in the case of large investment and transformation projects of company-owned assets. Regardless of the type of project, Bureau Veritas supports you along the complete acquisition process:
3 Phases of Technical Due Diligence
VALUATION OF MACHINES AND EQUIPMENT
When buying, selling or investing, Bureau Veritas supports you with a long-standing technical and cross-industry expertise in machinery and equipment valuation. Detailed valuation is part of our Technical Due Diligence review and provides added assurance to buyers, sellers, investors and lenders. Among other services, we offer the following:
- On-site visit and inspection of the machine/asset
- Review of relevant documents (e.g. acceptance protocols, documentation of the manufacturer or in case of modifications of the machine)
- Evaluation of the technical condition
- Review of approval-relevant requirements
DECISION SUPPORT FOR YOUR INVESTMENTS - YOUR BENEFITS FROM A TDD AUDIT WITH BUREAU VERITAS
A Technical Due Diligence review minimizes financial risks, provides decision support and secures your investment decision. This makes it all the more important to work with an experienced partner with the necessary technical expertise. With a Technical Due Diligence review, when purchasing complex industrial equipment, you drastically minimize the risk of a bad investment and also benefit by:
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Risk identification
Identification of technical, financial, legal and environmental risks
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Risk assessment
Evaluation of the risk with regard to the suitability of the plant and its potential for future upgrades and conversions.
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Cost forecast
Assessment of the level and quality of maintenance and forecast of future maintenance and repair costs
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Recognized procedure
Worldwide recognition of TDD testing for your purchase project by a global company with an excellent reputation