Due Diligence and Transition Support Services

Due Diligence

We are business managers with a deep understanding of the technical aspects of managing power plants in commercial operation. Many clients have utilized these perspectives to help them evaluate potential investments or strategic decisions regarding proposed or existing facilities.

Our clients have come to expect us to provide comprehensive financial models, capital and operating cost projections, contract reviews with foresight, candid assessments of physical condition and meaningful suggestions for improving the present value of a potential investment.

Our due diligence services typically include the evaluation of a wide range of critical issues including:

  • Business Economics – Capital cost analysis, base operating cost estimate, economic evaluation model, fuel and operating cost impact analysis for various operating scenarios, benchmarking to other projects and other similar analyses.
  • General Management – Staffing levels and organization, management practices and systems, union labor attitudes and issues, and maintenance management practices and systems.
  • Contracts – Review and/or re-negotiation of power sales agreements, fuel supply agreements, steam sales agreements, and operations and maintenance agreements.
  • Project Technical Issues – General project condition, specific areas of potential or current equipment problems, operating regime, fuel selection and emissions, equipment or spares redundancy or needs, and environmental issues.

Transition Support

From the time a purchase commitment has been made to the time of a financial closing, there is an enormous amount of work involved in the strategy, preparation, and execution of a smooth transition of ownership. Although transitions vary greatly in scope and the issues involved, the goals are always the same: to build the necessary relationships, and have the tools in place to integrate the new organization as quickly, painlessly, and economically as possible.

We often support new owners during the ownership transition phase by providing support related to some or all of the broad categories listed below. In fact, we can manage – and have managed – the entire transition process.

  • Sale and Closing Issues
  • Management Systems
  • Business Systems
  • Financial Systems
  • Payroll Systems
  • Compliance Systems
  • Personnel Systems
  • Procurement Systems
  • Power Marketing and Sales
  • Operations and Maintenance Management

Read more about our experience providing due diligence and transition support.

For more information please contact Dave Morgan or Ron Fawcett.

Comments are closed.