Technical due diligence

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Minimising risk, maximising return on investment

For acquisition teams who need a valuable insight into the many factors that will influence the decision to invest in a business. In terms of oversight it will, from multiple perspectives, identify the issues that can minimise risk and maximise the return on investment and cash flow derived from these assets.

Hickman Shearer’s advisory services provide:

  • Pre-deal early report – High level analysis based upon our own asset knowledge and experience, specific market research and public information. This enables an investor to quickly up-skill in terms of asset knowledge to obtain an early sense of the potential risks and benefits that will contribute towards a decision to progress with the potential investment.
  • Detailed report – Detailed analysis of the material issues that may impact upon an investment decision including:
Impacts on cashflow What capital asset issues will impact upon cashflow in the future?
Asset benchmarking Is investment in new assets required to remain competitive?
How does the production process compare with its peer group?
Is the business vulnerable to current or future regulation?

Are there material technical barriers to entry?

Capex options? What needs to be replaced and when?
What are the alternative replacement options and at what cost?
What are my working capital funding options?

Operational capital asset risk

Evidence illustrates that the overriding majority of asset operators positively plan to invest and replace new capital assets and operate a planned maintenance programme:

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Typically, Hickman Shearer capital asset due diligence will measure and benchmark these and other relevant issues, with the performance of the target organisation, to estimate the future cash flow and capex implications on acquisition.

Have a question? Contact us and speak to our asset valuation, asset management and equipment sales experts to answer any questions you may have.

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Hickman Shearer successfully provided asset management services for corporate finance transactions for:

3i, Agathos, Deutsche Bank, Mizkan, NVM.

Relevant experience 1

Valuation of power station supports flotation

Relevant experience 2

Asset valuation vital to securing asset based lending finance

Relevant experience 3

Global telephone M&A deal supported by asset valuation

Relevant experience 4

Corporate finance and asset management

These engagements were performed by the Directors of Hickman Shearer in either their current or previous employment

Tim Chapman wide
Tim Chapman FRICS, MSc
Director
+44 (0) 7508 909961
+44 (0)1844 215755