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Due Diligence

Due diligence is essentially the methodical process of uncovering "issues" that have a material impact on the project or investment. These could result in financial problems, operational problems, maintainability problems and insurability problems of the asset etc.

Before you decide to develop, finance, invest in or acquire the project or asset, you need to fully understand whether the technical information complements the financial model presented by the Borrower or Asset owner. Failure to properly assess the financial model in the context of the technology employed could lead to under performing loans, poor financial returns, writeoffs, schedules delays, flawed deliverables, contractual, legal or statutory compliance problems, etc.

We are familiar with the project financing due diligence process and have consulting experience on greenfield project financing, asset acquisitions and asset divestitures. We are also experienced in performing enginering design and construction monitoring, vetting of drawdown requests, performance test witnessing and annual operations review for the term of the loan or investment. At Integral Consultants, our aim is to help our clients avoid bad investments or acquisitions, under performing loans, costly, time consuming and unproductive disputes from arising.

Technical Due Diligence

What we do in a technical due diligence review is typically look at two critical areas, namely technology and operations & maintenance of the project. We also provide construction monitoring, performance testing witnessing and operations review and report for the term of the loan.

Technology Review

For technology review, we would review the technology proposed or used for the project and will offer an opinion as to whether it is a reliable and proven technology or not. We will also review whether the technology proposed or used for the project can support the financial projections of the project.

Operations and Maintenance Review and Advice

If there is operation and maintenance history available for the project, we can also review how well the project has performed in terms of operations, maintenance and safety.

Commercial and Financial Due Diligence

Commercial and financial due diligence involves reviewing the commercial and financial aspects that are crucial to the ongoing viability of the project and whether the financial projections are inline with the type of facility.

 

Copyright 2010. Integral Consultants Pte Ltd. All rights reserved. Last updated on 19 January 2011