Technical due diligence addresses the non-commercial aspects of a business including the design of the facility, human factors, security of intellectual property (IP), business continuity, and environmental impact and legacy.
Technical due diligence is the process of gaining a clear understanding of the design intent and condition of the asset and confirming its continued suitability for its intended use and intended life span, as well as compliance with regulatory constraints. It can be used as part of an ongoing evaluation of corporate risk exposure or as part of a business transaction to ensure that assets are appropriately valued; it provides the company management with the data required to understand the need for, and to quantify and prioritize future costs and liabilities.
Four Interacting Elements of Technical Due Diligence
Asset Due DiligenceAsset due diligence helps clients confirm that the physical assets that are owned or part of a purchase agreement are fit for purpose, and helps identify the physical hazards and risks associated with the operation of the business. In particular, the purpose is to identify for clients the condition and reliability of capital assets, and estimate their remnant life, taking into account potential obsolescence of equipment, thereby identifying the potential requirements for future investment in order to meet production targets or regulatory requirements.
Operational Due DiligenceOperational due diligence considers the processes and procedures that govern the performance of work; looking in particular to inform clients regarding safety, quality and integrity management systems in place to ensure that business objectives are achieved. Depending on the nature of the investigation, it will also include a review of the human factors influencing the business including work flow, stock control, operability, maintainability, competence assurance, and industrial relations.
Security Due DiligenceOur clients benefit from understanding a number of facets of security, including physical security due to terrorist activity; natural hazards such as flooding, earthquake and high winds; and business security, business resilience and continuity provisions, and data security. Geosyntec is able to provide clients support with qualitative evaluation of risk based on standard industry data; and detailed modelling of structural response to bomb blast and seismic activity.
Environmental Due DiligenceChanges in legislation have meant that environmental due diligence has become ever more important when clients evaluate risk exposure. Environmental liabilities are often out of sight, and can result in owners and funders incurring significant unforeseen costs or even criminal penalties for employees.
Our environmental due diligence services assist clients in the evaluation of potential contamination, other environmental concerns, and regulatory compliance. We also help clients quantify the extent of such contamination through analysis and proven remediation technologies to return land to an acceptable condition.
Depending on the objectives of the due diligence and the level of the perceived risk, Geosyntec is able to tailor solutions to meet specific client needs whether they require a simple qualitative check-list based study , a detailed analytical study, or a quantitative evaluation of risks.
In general, we use a three stage approach with increasing specificity and reducing uncertainty:
Phase I – Screening Study
- Data room inspection (virtual / physical)
- Questionnaire and interviews
- Site visit
Phase II – Detailed Investigation
- Field investigations of high potential issues identified in Phase I
- Detailed technical study of high potential issues identified in Phase I
Phase III – Remediation
- Development of rectification and remediation solutions, based on the findings of the Phase II studies
Our consultants understand how science and engineering should be incorporated into risk management strategies for true, pragmatic and cost effective risk reduction for clients. We specialize in providing our clients with the appropriate application of innovative, high quality science and engineering to the evaluation and mitigation of risks posed by major hazards and threats.