Hundreds of Mergers and Acquisitions (M & A) happen all over the world every year. Some of these are in the process industries.
As a part of the merger process or an acquisition, typically the company that is taking over employs an army of consultants to carry out a due diligence process that mainly covers accounting, taxation and legal matters. However, attention has also to be paid to the technical aspects of the target company, that may have large plants or production sites as its assets. In a global scenario, it may be possible that some sites are very well maintained, have impeccable safety systems and incident records whereas some may not be that good.
That one ugly duckling can expose you to unnecessary risk. Maybe the plant is not well managed and has several safety issues.
Maybe the assets are in poor shape and obsolete and perhaps at the end of their life in real terms (not on paper, where they may have been commissioned not long ago). Correct evaluation of these technical aspects is absolutely essential before the actual merger, to know how much more money will be required to bring it up to the standards of the acquiring company, or to reduce the risk.
Abhisam's consultants can help you carry out this technical due diligence quickly and cost effectively.
Contact us to find out more.