Technical Due Diligence for Existing Assets: Identifying Risks and Unlocking Value
By Tracy Sadowski with contributions from Rick Hoffman, Joseph Jacobs, Mel Larson, and Andrew Last
Buying, upgrading, or selling an industrial asset – be it a refinery, chemical plant, or renewable fuels facility – comes with big decisions and even bigger implications. Financial due diligence gives you the numbers, but it’s technical due diligence (TDD) that reveals how well the asset really works and whether it can meet your goals.
At Becht, we’ve spent over six decades helping clients make smart, informed choices about their assets. We think like owners; our recommendations are grounded in what actually works because we’ve run, maintained, and optimized facilities like yours. With our structured due diligence process, we help uncover hidden risks, highlight opportunities, and build a path forward that’s rooted in real-world engineering insight. And then we stick around to help implement it.
This blog pairs with our companion post, Technical Due Diligence for New Technologies, which dives into how we approach unproven innovations. If you’re exploring a cutting-edge concept or early-stage tech, be sure to check it out. But if you’re working with an existing facility, this one’s for you.
Why Technical Due Diligence for Operating Assets Matters
Whether you’re thinking about buying an asset, investing in upgrades, or making sure your operations are on solid ground, technical due diligence gives you a deep look under the hood. We look at everything from mechanical reliability to safety systems, and from energy use to capital plans. Here’s what we focus on.
• Mechanical Integrity and Equipment Condition: We evaluate the condition of major assets, like pressure vessels, piping, and rotating equipment, to understand what’s in good shape and what might need attention soon. We review inspection histories, look for signs of corrosion or degradation, and check for compliance with relevant codes and standards.
• Maintenance & Reliability: An asset’s reliability often comes down to how well it’s maintained. We dig into historical maintenance data, examine how the preventive and predictive programs are working, and assess whether critical spares are on hand or if supply chain gaps could become a problem down the road.
• Process Safety and Compliance: Safety systems aren’t optional – they’re fundamental. We review your Process Safety Management practices, check for gaps in environmental compliance, and analyze incident histories to help you reduce risk and stay aligned with regulations.
• Operational Efficiency and Benchmarking: We assess how the plant runs day to day. Is energy being used efficiently? Are there production bottlenecks holding you back? How does your performance stack up against similar facilities? We bring context that helps identify where and how performance can improve.
• Future Planning and Investment Readiness: From CapEx forecasting to evaluating potential for larger investments and reconfigurations, we help you understand where your asset is headed and what it’ll take to get there. This includes supporting sales readiness and making sure your facility stands out to potential buyers.
How Becht Approaches Technical Due Diligence
We’ve built a structured process that balances thorough analysis with efficient execution. This is how it works.
Step 1: Getting Started
We begin with a kickoff meeting to align on your objectives. This is when we also request the key data we’ll need: inspection records, maintenance logs, safety reports, and CapEx/OpEx plans. Getting this right sets the tone for the rest of the engagement.
Step 2: Onsite and In-Depth
When needed, we visit the site. Seeing the facility in person and talking directly with operations and maintenance teams gives us valuable insights. We look at reliability trends, dig into past failures, and explore how (or whether) issues have been managed.
Step 3: Sharing What We’re Finding
Throughout the review, we keep you in the loop with weekly Red Flag Reports. If something jumps out – like a critical compliance issue or an overlooked maintenance risk – you’ll hear about it right away, not weeks later.
Step 4: Delivering the Full Picture
Our final report pulls it all together: the current condition of the asset, where the risks are, what investments might be needed, and what steps should be prioritized. We wrap it up with a closeout meeting so you’re fully briefed and ready to act.
Step 5: Supporting You After the Report
Many of our clients ask us to stay involved post-due diligence. Whether it’s helping implement reliability improvements, reviewing future performance, or advising during transitions, we’re here to help however you need.
Where We’ve Made a Difference: Case Studies
Gap Assessment for a Northern U.S. Refinery
A refinery in the Northern US engaged Becht to evaluate the current state of its mechanical integrity, maintenance, process safety, and instrumentation & electrical systems. The goal was to identify gaps and opportunities for operational improvement. Becht’s team conducted a thorough multi-phase assessment that included a data room review, an on-site visit, and follow-up conference calls. The result was a comprehensive gap report with prioritized improvement estimates, providing the client with clear direction for operational enhancements.
Due Diligence for a Major East Coast Refinery Acquisition
To support the acquisition of a large East Coast refinery, Becht was engaged to conduct a comprehensive engineering review. The team led a multi-disciplinary assessment focused on mechanical integrity, maintenance, inspection protocols, and instrumentation & electrical systems. The review identified existing plant conditions, program gaps, and opportunities for improvement, providing the critical insight needed to enable a successful acquisition decision.
Midstream Asset Review for a West Coast Pipeline Acquisition
Becht was engaged to evaluate midstream pipeline assets on the West Coast as part of a potential acquisition. The team conducted a data room analysis, completed a brief site tour, and interviewed pipeline operations staff to gather a comprehensive understanding of the assets. The resulting report highlighted key risk areas and operational concerns, giving the client critical insight to inform their investment decision.
Turnaround Risk Assessment for a Refinery Acquisition
A private equity group needed to evaluate turnaround (TA) costs and risks associated with a potential refinery acquisition. Becht’s due diligence effort focused on benchmarking TA costs against industry norms and assessing related operational and financial risks. The team delivered a deep-dive analysis that addressed investor concerns and helped quantify potential risk exposure, providing the client with a clearer picture of the asset’s value and associated liabilities.
Assessment of an Idle Refinery Relocation
A lender required a rapid, independent assessment of a proposed loan to support the relocation of an idle refinery to an international site. With major equipment already being dismantled for modular shipment, time was of the essence. Becht assembled a team of engineers to conduct site inspections across multiple locations, evaluating the condition of the assets and the feasibility of refurbishment. Analysts reviewed potential product yields, cost estimates, and key business case assumptions. The evaluation addressed critical questions around equipment readiness, timeline feasibility, technical risks, and downside asset value.
A preliminary recommendation was delivered in person within two weeks, followed by a detailed report the next week. The final analysis included upside, base, and downside scenarios, along with milestone-based recommendations to help the client manage and reduce transaction risk.
Let’s Talk About Your Asset
Due diligence isn’t a box to check. It’s an opportunity to understand your asset more deeply and make smarter decisions. Whether you’re preparing for a transaction, a major upgrade, or simply want peace of mind, Becht’s team is ready to help. To learn more, connect with our experts.
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