UAE
Technical Due Diligence

Asset advisory services related to technical due diligence and conditional assessment of various properties such as warehouses and residential towers

Financial Institutions
KSA
Technical Due Diligence

Detailed Technical Due Diligence Assessment & Valuation of 5 chiller units installed in a facility, located In Jubail

Utilities
Qatar
Financial Due Diligence

Financial Due Diligence and Net Asset Valuation assessment for a services management company for M&A purpose

Services

The analytical abilities of our Strategy Advisory team and the large network of our trained on-ground surveyors enables us to provide thorough due diligence on companies and individuals for the benefit of financial institutions and utilities who are considering extension of credit facilities to these potential customers. Similarly, our highly experienced industrial consulting team can provide a reliable and in-depth assessment of industrial or real estate assets being considered for acquisition or finance. Our experts also provide financial due diligence and commercial due diligence services for companies as well as project monitoring services for under-construction projects. In all such circumstances, ValuStrat can be your trusted partner for delivering sound and thorough advice before you proceed with making critical decisions.

Commercial Due Diligence

We support our clients in undertaking buy-side or vendor commercial due diligence in a variety of transaction scenarios including sale processes, acquisitions, and refinancing of both equity and debt. Our commercial due diligence service is strongly centred towards commercial viability of the target business, which takes into account the target’s market environment and its competitive position in the market considering various aspects of its operations, product features, customer base, unique selling points and future outlook. Our independent approach ensures we identify upside potential as well as all internal and external commercial risks associated with the target business.

Our commercial due diligence service also assists our clients in obtaining market insights and inputs for improving commercial operations for their businesses. This enables them to drive better deal value by assisting management teams in developing their strategy and providing commercial inputs for their business plans. We also provide commercial insights during independent business reviews for both the firm’s management teams and their financing banks, typically during distressed situations. Our work helps identify the drivers of value and options for businesses to improve performance, which supports covenant setting and refinancing terms.

Customer Profile Validation (CPV) / Field Verification (FV) Services

Customer Profile Validation, also known as Contact Point Verification (CPV) or Field Verification (FV), are a vital part of a financial institution’s risk and credit approval process so that key information about existing or prospective clients can be verified independently through physical visits and other necessary due diligence processes prior to establishing a banking or lending relationship. We conduct these field visits on behalf of banks and financial institutions through our dedicated team of trained surveyors and analysts who collect and analyse all relevant data for various departments involved in different lending services including, but not limited to, SME loans, corporate loans, personal loans, auto loans and mortgage finance.

ValuStrat’s efficient field verification team supported by our powerful proprietary iPad based software Valuware enables us to deliver comprehensive reports to our clients in as little as 3 hours from the time of survey. Reports can be of various types including detailed Customer Profile Validation (CPV) Report, Field Verification Report (FVR), Address Verification Report (AVR), Customer Verification Report (CVR), Business Verification Report (BVR), etc. These reports are tailored to the requirements of every department within each bank or financial institution. Some of the key features of our CPV / FV services include:

  • Bespoke report functionality, suited to each bank’s requirements
  • 3 hour turn-around time
  • Comprehensive data analytics
  • Team is connected in real time through 4G LTE, ensuring very quick geographic reach
  • Dedicated call centre to ensure quick and efficient scheduling of field visits
  • Various electronic and physical quality control checks to ensure maximum data reliability
  • Supplemental visits to warehouses and branch offices of banks’ clients for additional verification if required
  • Field visits and surveys can be planned or unannounced, as required by the bank
  • Proactive alert in the event of any suspicious activities
  • Provision to integrate with existing back-end process

Financial Due Diligence

Our financial due diligence service is designed to provide peace of mind to our clients by focusing on relevant aspects of the target business identified as important by our clients, including areas that are potentially risky. We follow a systematic approach towards analysing and validating financial, commercial, and operational information provided by the target business for strategic transactions such as mergers and acquisitions, capital market deals, funds etc. Our firm’s robust knowledge and experience in a diverse range of business sectors enables us to provide a reliable and thorough financial assessment for all types of companies.

We follow a phased approach that supports our client’s decision-making process by understanding the initial motivation and drivers supporting the transaction. We conduct a preliminary assessment of the target business and build on to it by identifying deal breaker issues early in the evaluation process to enable our clients to make informed decisions as early as possible in the transaction process.

Our financial due diligence service provides comfort around robustness and quality of financial information and cover revenue and market due diligence, synergy validation, maintainable earnings, cost validations, estimation of future cash flows, identification of risks, redundancies, potential liabilities, and red flags etc. All of this is done while keeping in view the specific aspects of the firm’s operations as well as of the deal under consideration.

Mandoob Services

ValuStrat provides specialised iPad based Mandoob services for Islamic banks for the purpose of verifying and handing over assets being financed under Murabaha transactions.

Our proprietary processes and technology platform has enabled us to reduce average turnaround time (TAT) for this service to 3 hours as compared to industry practice of 48-72 hours, enhance quality control and widen geographic reach, thereby creating a service offering unmatched by any of our competitors. Financial institutions are able to process their clients’ Murabaha applications faster and better utilise the time of their sales staff, resulting in significant enhancement of overall efficiency.

Key features and benefits of ValuStrat’s Mandoob services include:

  • Smart forms and bespoke reports
  • Data analytics
  • High quality report
  • Dedicated call centre
  • Unmatched quality control
  • Very quick geographic reach through real time GPS monitoring of surveyors’ location
  • LTE (4G) connectivity for quick data transfer
  • Signature capture on iPad
  • System controlled time and location stamp
  • Hi-res pictures
  • Cloud computing for data storage and implementing changes

Real Estate Development Forensic Assessment (REDFA)

We conduct forensic due diligence reviews of contractor interfaces on major development programs, projects and packages of work, to assess the impact of any identified risks and inconsistencies, and then develop routes to recovery through:

Forensic Review:

  • Reviewing of contract costs (Sample & 100%)
  • Due diligence review of contractor processes
  • Validation of accuracy of contractor invoices/claims


Forensic Cost Assessment (FCA):

  • Review of client and contractor processes
  • Review of actual costs (100%)
  • Commercial recovery processes


Governance and Process Review:

  • Reduction in transactional inefficiencies
  • Development of process risk mitigations
  • Process optimisation strategies around clear objectives (improved cash flow)


FCA led Supplier Relationship Management (SRM):

  • Revealing Opex and Capex costs & developing product category improvement strategies
  • Practical solutions for Supply Chain process improvement

Technical Due Diligence

Our team of engineers analyse the condition, reliability, level of maintenance, suitability and other relevant technical aspects of plant, machinery, and equipment for the benefit of potential acquirers, investors and financiers.

This specialised service is especially relevant for transactions involving mergers, acquisitions, and project financing in a variety of sectors. In addition to the usual financial and legal due diligence required for such transactions, technical due diligence is often a key requirement to provide comfort to the parties involved in the project.

We provide our technical due diligence services for various industries & sectors:

Industrial

  • Production facilities and factories across many sectors
  • Warehouses and other industrial buildings & structures
  • Infrastructure development for industries


Real Estate

  • Residential projects
  • Commercial projects including hotels, malls, office buildings etc.
  • Mixed-use developments
  • Infrastructure projects


The typical scope of work for Technical Due Diligence is as follows:

  • Condition analysis of plant & machinery
  • Assessment of condition of buildings and structures
  • Verification of production capacity
  • Technical capability of the facility to support the projected growth plan meaning to evaluate if the plant is capable enough to undertake the required increase in production as projected by the client
  • Overall plant metrics (operating condition/process flow, etc.) and proffer potential solutions, if applicable.
  • Assessment of the risk in view of the plant’s & its core assets suitability for future upgrades, improvements or potential expansion possibilities.
  • Assessment of level and quality of maintenance
  • Estimation of future maintenance and repair costs
  • Estimation of potential replacement costs of irreparable assets
  • Evaluating key risks to the production facility and/or building structures
  • Reviewing compliance with industry standards
  • Assessment of technology, project cost and defined implementation schedule
  • Evaluating Technical and / or Functional Obsolescence related to facility, plant, machinery and equipment
  • Claim Dispute Evaluation
Khurram Merchant Managing Director, Advisory
Darshan Shah, MRICS Managing Director & Group Head, Industrial Consulting
Kashif ur Rehman Associate Director, Advisory

Connect with our experts in Due Diligence. We’re always looking to work on new perspectives, new research and new ideas.