Whitehopleman has conducted technical due diligence audits on prospective and existing cement, aggregates and ready-mix concrete assets in numerous countries around the world. By retaining Whitehopleman to undertake such due diligence assessments investors can be assured on the past, current and future performance of the assets in terms of productivity, energy efficiency and reliability.
The requirements of potential investors in such heavy building materials assets are different to those of the current owners and operators of such assets. The potential investors are seeking reassurance on:
- The past, current and future performance of the assets in terms of productivity, energy efficiency and reliability.
- The physical condition of the assets and any major requirements for upgrade or repair.
- The existence of sufficient, permitted, raw material reserves for the future operations.
- That there are no legacy issues in terms of environmental or social performance that would present a fatal flaw to the acquisition of such assets.
Acquisition of such assets involves an assessment of the fair price to be paid. This requires a discounted cash flow model that allows the net present value of the assets to be determined. Whitehopleman has a vital role in contributing to the development of that discounted cash flow model:
- Forecasting the production and sales volumes and product mix.
- Verifying and forecasting current and future operating costs (OPEX).
- Estimating future capital cost (CAPEX) requirements for upgrades.
By retaining Whitehopleman to conduct technical due diligence an investor enjoys the following benefits:
- Independent, impartial, specialist advice in the assessment of cement factories, distribution facilities, aggregates quarries and ready-mix concrete plants.
- An informed assessment of the current and future performance of the cement, aggregates and ready-mix concrete assets, their current condition and the future requirements for capital investment.
- The confidence that there are no unknown technical legacy issues.
- Technical contributions to the valuation of assets to be acquired.
Investors are urged to retain Whitehopleman to conduct technical due diligence when considering the acquisition of cement, aggregates and ready-mix concrete businesses around the world.