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This lets acquirers make more informed decisions during a potential purchase, minimising risk and increasing the confidence that sustainable value can be made. As well as this, it can also allow a review of the current and forecasted market landscape. The acquirer can use a commercial due diligence report to provide their financier comfort and reassurance that the transaction or project will not fail.
Commercial due diligence is crucial for companies within the ENRI space, as advances in technology, changes in policies and regulations and a constant drive for innovation and cross-border expertise across the industry mean that companies have to stay in the loop constantly in order to make informed decisions.
Many energy projects require very specific feasibility studies and technical assessments. Oil rig decommissioning, be it platforms or associated infrastructure, for example, must adhere to the regulations set by local bodies or specific conditions written into PSAs, as well as overarching national legislation and international guidelines. These types of projects can cost operators tens of millions of dollars and many experts are predicting decommissioning to overtake development spend the latter half of this decade.
Another example is gas transmission expansion or integration with existing supply networks, which requires detailed information to provide insight into demand requirements, infrastructure planning options, supply volumes and price forecasting, project cost analysis and more.
Every project has a different lifecycle and roadmap with specific stakeholder and regulatory requirements, however what is vital in all scenarios is proper assessments, accurate price valuations and realisic plans.
These are our recommended general steps to take to support your investment decisions:
– What is the relative position of the target company within the market?
– Are there any upcoming challenges or risks to the business model?
– Will the transaction help you navigate the industry or create new opportunities for growth?
– Are the growth expectations realistic, unambitious, or overambitious?
– Have the cost expectations been tested against benchmarks or possible upsets?
– This is perhaps the most critical role in the due diligence process. What kind of value can the acquirer unlock, either by changing the way the acquisition is managed or by integrating it with the acquirer’s core business?
– What’s the best way to stay on top of the due diligence process?
– How will the acquirer manage the multiple stakeholders involved, including investment bankers, lawyers, and regulators?
– Will there be any policies or regulations that could hold you back to consider?
– How will these be mitigated or resolved?
Our approaches to commercial due diligence are always adapted to the individual requirements of our clients. Through our established network of Experts, and our skills of procuring new Experts for any niche market or segment, we can address a variety of business challenges.
These include:
✓ Specific research design
✓ Development plan reviews and implementation recommendations
✓ New market screening and valuations
✓ Assessing deal timelines using innovative, specialised approaches
✓ Project capital cost estimates
✓ Competitive landscaping
✓ Technical review and standards benchmarking
✓ Project and investor/funding profiling
✓ Leveraging industry expertise for impact investing
Here are some of the main ways we do this:
The fastest, most efficient way to access insights from around world. Select your preferred Expert from a custom-sourced shortlist, matched specifically against your information request.
(One-To-One, Groups, Panels, Workshops) Make connections in person and dive into some deep learning on the topics you need to know about with top-level professionals from the field of interest.
Have a short document produced just for you, on whatever topic you are keen to learn about, written by a subject matter expert in the space you are investigating.
An introduction service to assist projects looking for solid investment, and members of the investment Global EPC Company community looking for great projects.
Clients notify us that they need leading insight for their project.
We engage and vet subject matter Experts matched to the request at speed.
Clients consult with their shortlisted Expert(s) and obtain forward knowledge to incorporate into their strategic plans.
Clients benefit from more refined analysis and practical recommendations to achieve a quantifiable business impact.
The Experts allowed the client to understand key aspects of the industry such as the risks of retail fibre sales, how to retain customers and how to grow the customer base once a fibre network is built.
Director