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CASE STUDY PRE-ACQUISITION DUE DILIGENCE & POST-CLOSE …€¦ · CASE STUDY BACKGROUND A Private...
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Randy Rees, Principal T: 503 723 4423 [email protected] PRE-ACQUISITION DUE DILIGENCE & POST-CLOSE SUPPORT CLIENT OBJECTIVES SERVICES www.slrconsulng.com Client: Private Equity Locaon: Wisconsin, Kansas, Illinois, Parque Industrial opcion, San Jose Iturbide, Guanajuato, Mexico Country: USA & Mexico Sector: Industry Provided strategic consideraons fore the bid submial for the companies; completed pre-closing due diligence; and provided brackeng of financial exposures. Environmental Due Diligence Compliance Site Invesgaon General Business Advisory CASE STUDY BACKGROUND A Private Equity client-partner was considering acquision of a mul- state company that manufactures new stainless steel milk, sanitary and chemical tank trailers and aluminum pneumac dry bulk tanks. Prior reports described adverse environmental condions from historical acvies as being present at mulple locaons. Facilies were on both leased and owned land. Some property owners were difficult to work with and refused to allow addional site invesgaon. Extremely ght me lines had to be met as ulmately three separate manufacturing companies, including an operaon in Mexico, were acquired in rapid succession. The Client realized a significant price reducon based on SLR’s presentaon of findings and strategic inclusion of the Seller’s own environmental consultants prior reports. Subsequent to closing, the idenfied environmental concerns were brought to closure for less than 30% of the price reducon received and within 10% of SLR’s cost esmate. OUR ROLE • Reviewed prior environmental reports and documents in the deal’s data room for informaon to formulate a strategy allowing the Client to leverage available informaon in preparing a more responsive bid submial. • Subsequent to the client being awarded the bid, SLR conducted site inspecons, interviews and other field acvies in compleng of environmental due diligence. • Worked with the Client’s insurance and legal team members to definively idenfy the upper financial exposure; and work with the facilies post-closing to bring the idenfied environmental maers to closure.
Transcript of CASE STUDY PRE-ACQUISITION DUE DILIGENCE & POST-CLOSE …€¦ · CASE STUDY BACKGROUND A Private...
Randy Rees, PrincipalT: 503 723 [email protected]
PRE-ACQUISITION DUE DILIGENCE & POST-CLOSE SUPPORT
CLIENT OBJECTIVES SERVICES
www.slrconsulting.com
Client: Private EquityLocation: Wisconsin, Kansas, Illinois, Parque Industrial opcion, San Jose Iturbide, Guanajuato, MexicoCountry: USA & MexicoSector: Industry
Provided strategic considerations fore the bid submittal for the companies; completed pre-closing due diligence; and provided bracketing of financial exposures.
Environmental Due Diligence
Compliance
Site Investigation
General Business Advisory
CASE STUDY
BACKGROUNDA Private Equity client-partner was considering acquisition of a multi-state company that manufactures new stainless steel milk, sanitary and chemical tank trailers and aluminum pneumatic dry bulk tanks. Prior reports described adverse environmental conditions from historical activities as being present at multiple locations. Facilities were on both leased and owned land. Some property owners were difficult to work with and refused to allow additional site investigation. Extremely tight time lines had to be met as ultimately three separate manufacturing companies, including an
operation in Mexico, were acquired in rapid succession.
The Client realized a significant price reduction based on SLR’s presentation of findings and strategic inclusion of the Seller’s own environmental consultants prior reports. Subsequent to closing, the identified environmental concerns were brought to closure for less than 30% of the price reduction received and within 10% of SLR’s cost estimate.
OUR ROLE• Reviewed prior environmental
reports and documents in the deal’s data room for information
to formulate a strategy allowing the Client to leverage available information in preparing a more responsive bid submittal.
• Subsequent to the client being awarded the bid, SLR conducted site inspections, interviews and other field activities in completing of environmental due diligence.
• Worked with the Client’s insurance and legal team members to definitively identify the upper financial exposure; and work with the facilities post-closing to bring the identified environmental matters to closure.
