Asset Valuation Study
Multi-site asset valuation study supporting PE due diligence assignment
USA Private Equity Client
Conduct a multi-site valuation assessment of target company plant assets resale value for a syndicated loan transaction under consideration by our PE client. A novel approach to conducting such a survey was required since site access was prohibited.
A major aeroengine component OEM’s principle owners were looking at taking out a syndicated loan with our PE client. A full asset register was not available nor was access to sites to perform an evaluation of the physical plant assets. A unique approach was developed to create a representative plant and equipment asset register for the commodities which were produced by each of the manufacturing sites. Plant size, contracts, programmes and annual volumes were remotely researched – without access to any client provided data, which allowed Hawksland to map out the likely processes and ‘size’ each of the organisations. Capabilities and capacities could then be reasonably assessed and specific equipment described to make each product. We created an asset depreciation model based on an estimate of age and utilsation modelling. Thereafter we were able to benchmark resale values of the asset register.
Created a realistic resale value plant and equipment asset register for each of the OEM sites under review. Our PE client was able thereafter to factor our data into their risk assessment model for the syndicated loan they were considering.