Log in

Login to your account

Username *
Password *
Remember Me

Becht Engineering Blog

In this section of the site contributing authors submit interesting articles relating to the various services, industries and research & development efforts of Becht Engineering.

Negotiating Plant Access for Due Diligence

just-the-fact_20190122-202155_1
Just the Facts Ma’am The famous phrase, “Just the facts, Ma’am,” was often linked to Los Angeles Police Department Sargent Joe Friday who wore badge 714 on the TV show Dragnet. However, according to several sources, the facts are Joe Friday never said this exact phrase on the long running TV show.  The statement “Just the facts, Ma’am” was in a parody of Dragnet by Stan Freberg. Facts can be surprising. When we perform due diligence studies we want to be sure we get “Just the facts” as quickly and accurately as possible. This is only possible if the facility that is the subject of the study is prepared, open and honest and we are able to visit the site. We need to physically walk down the plant, review records and talk to personnel up and down the organization. This blog is a request to our clients who are interested in...
Continue reading
2
  98 Hits
  0 Comments
98 Hits
0 Comments

Due Diligence - Making Rapid, Accurate Judgements

kidnapped_by_business_team
or  " Kidnapped By My Own Business Team" A number of years ago I worked closely with an Operating Company Business Team and Mergers and Acquisitions group performing due diligence assessments. I often led these assessments and my input on reliability, maintenance, mechanical integrity and inspection was incorporated into a multi discipline team of legal, environmental, finance and operational experts. These assessments could be as long as six weeks to thoroughly evaluate an asset. The adventure I am about to describe was a lot different. My boss called me and asked me to come to his office right away. This was quite unusual for him unless my number came up for a random drug test. I went to his office immediately, closed the door and we started our meeting. He said, “ I need you to be in front of the corporate office at 6 AM tomorrow. Hopefully you will return...
Continue reading
4
  232 Hits
  0 Comments
232 Hits
0 Comments

All That Glitters Is Not Gold - Due Diligence Can Define The True Value

pot_of_gold_rainbow
A few years ago I conducted what might be the world's cheapest, fastest and most cost effective due diligence study ever done. This study took one hour and cost the client about $500.  I was approached by two new members of a well-recognized financial institution. They were assigned to evaluate opportunities to capture low cost natural gas. They had discovered an ammonia plant for sale in an intensely agricultural region in the Midwest-US. Considering feedstock cost, proximity to market and asking price for the plant, they thought this was a gold mine.  Their superiors had some concern about the enormous enthusiasm of these new employees and asked them to evaluate the condition of the asset to determine if it would perform at reasonable rates with acceptable mechanical availability. That is when they reached out to me. A call was scheduled and they explained the situation and “golden” opportunity. They we indeed...
Continue reading
4
  216 Hits
  0 Comments
216 Hits
0 Comments

Due Diligence - Front End Loading for Plant Acquisitions

due_diligence_becht
In many cases operating companies and financial institutions utilize Due Diligence studies for critical input on “Go/No Go” decisions for plant acquisitions.  Once the decision is made to purchase the plant, the Due Diligence study is often put on the shelf.  The company purchasing the new asset then faces significant challenges integrating the asset into the enterprise culture, implementing enterprise procedures and standards, capturing and implementing best practices and evaluating the quality of the team at the new plant.  A well executed Due Diligence study can play an important role in the rapid integration of a new acquisition into the existing enterprise from an expectations and culture standpoint.  This process using the Due Diligence study as a road map can be viewed as a type of “Front End Loading” for plant acquisitions.  An experienced Due Diligence team can quickly identify a number of issues that the new owner will have to...
Continue reading
1
  1174 Hits
  0 Comments
1174 Hits
0 Comments