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Engineering tools

Mergers & Acquisitions (M&A),
Due Diligence

An appropriate and reliable value estimation for an industrial enterprise can only be prepared if the value and condition of the machinery park and technical assets are known in detail. Production plants, machines, tools and casts but also goods in stocks usually account for the majority of physical assets in an industrial enterprise. At the same time they account for one of the biggest financial risk factors within an M&A transaction as well. The fixed assets noted in the financial statement often do not display the reality considering that book values might be higher or lower than the actual value, machines are broken or disposed but are still noted on the balance sheet or completely depreciated machines or tools need to replaced which leads to a huge negative cashflow in the near future. Goods in stock might as well be unusable due to technical further development or aging and so be worthless even though their acquisition cost is still part of the current assets. We check, verify and evaluate fixed and current assets within a due diligence to minimize your risk of unexpected future cost affecting the cashflow as well as preventing you from spending a fortune on scrap.

In the field of mergers and acquisitions our consulting services and reports focus on:

  • Approve the list of assets and machinery park regarding accuracy and completeness

  • Valuation of the physical assets including machinery equipment, tools and casts

  • Evaluation of the wear and tear condition and expected investment to maintain machinery park

  • Identify financial risks resulting from future investments to repair or replace worn or broken machines, tools, casts and other equipment

  • Identify dead capital such as goods in stock, machines or casts for suspended products, material with low stock turnover, wrong deliveries placed into stock etc.

 

Restructuring, closure of company and insolvencies

Within restructuring, insolvencies or the sale of an enterprise or shares of an enterprise we support lawyers, tax consultants or liquidators by preparing valuations and approvals of the machinery park. Based on our valuations it is possible to identify hidden reserves or -burdens and raise them if necessary. It is also possible to evaluate and expected liquidation revenue for the physical assets to build a restructuring strategy accordingly. A detailed and professional asset valuation report can therefore be considered as an important basis for decision making within an insolvency or restructuring process.

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