What does a renewable fuels or renewable chemicals due diligence expert do? Due diligence (DD) is a comprehensive appraisal of a plant undertaken by a prospective buyer, to establish its assets and liabilities and evaluate its commercial potential. The asset may be an existing bio processing facility or power plant, or it may be a project still under development, and existing only on paper. The DD process is akin to hiring a mechanic to evaluate a used car prior to purchase. Most lenders or investors insist on through due diligence investigations.
A renewable chemicals or renewable fuels due diligence expert evaluates all aspects of an asset. This goes far beyond simply evaluating the plant equipment. It encompasses regulatory, legal, contractual, environmental, financial, technical and operational due diligence considerations. An asset exists in contractual and regulatory space as surely as it exists in a physical state. An experienced due dilgence consultant knows precisely where to look for weaknesses. The expert knows to look for such things as whether key environmental permits are soon to expire, whether regional supplies of feedstock are stable, whether certain pieces of equipment are worn out, and whether regulatory change is a threat. These are but a few of the many aspects a DD expert should check. A due diligence expert also looks for hidden upside potential – things like plant expansion, market changes, or efficiency enhancements. Due diligence typically includes a site visit, document review and interviews with key personnel, culminating in a written report.
At Lee Enterprises Consulting, we have a highly qualified renewable fuels and renewable chemicals experts available to assist with technical, financial, environmental, operational, and legal due diligence. Feel free to call or email us for more information.