Acquisitions or divestments provide organisations with opportunities and risks. It is important transactions are entered into with an objective mind so that the benefits and threats are equally evaluated.
JNW can support your team with your due diligence. Its team have experience in:
- Financial risk due diligence for a major acquisition, including the development of a financial model with scenario capability
- Strategic transaction support to complete a billion dollar sale of a national energy retail business
- Data verification and due diligence process for the $1b listing on the ASX of Uecomm Ltd (now a part of Optus)
- Business case viability for new technologies such as ethernet, ADSL, wireless, VoIP, etc.
- Developing financial models for entities ranging from ASX listed to small businesses
- Financial impact analysis of a sporting association as a result of the withdrawal of significant funding
We recently assisted a Council with a major acquisition of a waste transfer and recycling station. This role included conducting a financial risk due diligence on key assumptions and building financial models in order to provide the Council with comfort around the financial risks, commercial viability and sustainability of this revenue generating opportunity.
Specific focus areas were:
a. Purchase price – site, assets, permit requirements, environmental and legal exposures
b. Project risks – key variables, ie tonnage, gate fee price, waste disposal cost and interest rate
c. Financial forecast – funding, return on investment, payback period, 10 year net cash position
d. Overall financial risk rating.
Our independent assessment provided comfort to the Councillors that appropriate acquisition due diligence had been completed and the transparency of the risk/rewards helped with their decision making.