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Technical Due Diligence (TDD)

Due Diligence

Technical due diligence is important when making significant business decisions for mergers, acquisitions, and project financing transactions.

Technical due diligence thoroughly examines a company's technical and industrial assets, including its specialised equipment, production facilities, building and structures. The technical due diligence process aims to ascertain the asset condition, assess the facility's technical capability, review plant performance metrics, conduct quality analysis, estimate future maintenance, identify risk, and comply with industry standards.

Technical due diligence consulting is a critical process that provides a deep understanding of the technological capabilities of a target company. It uncovers potential technical risks and opportunities vital for strategic decision-making. A comprehensive technical due diligence report can prevent costly oversights, ensure a fair valuation, and facilitate successful transactions.

Technical due diligence service is crucial when a business considers a significant M&A transaction. It provides a detailed understanding of the target company's technical and technological capabilities, potential, and challenges. This critical information aids in making informed decisions, mitigating risks, and ensuring the transaction's successful outcome.

At ValuStrat, our technical due diligence consultants have the right expertise to guide you through this complex process. Our technical due diligence consultants assess the potential risks and opportunities associated with the transaction. The findings are compiled into a comprehensive TDD report, providing you with valuable insights to guide your decision-making process.

Typically as part of a technical due diligence report, we cover the following aspects:

  • Condition analysis of plant, machinery, equipment, buildings and structures
  • Verification of production capacity
  • Review the facility's technical capability and plant performance metrics (operating condition/process flow, etc.)
  • Risk assessment of the facility and suitability for future upgrades, improvements or potential expansion possibilities.
  • Estimation of future maintenance, repair and replacement costs
  • Reviewing compliance with industry standards
  • Assessment of technology, project cost and defined implementation schedule
  • Evaluating technical and functional obsolescence related to facility, plant, machinery and equipment
  • Evaluation of claim disputes

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