Becht Engineering personnel have extensive experience conducting due diligence studies in the refining, petrochemical and specialty chemical areas. We conduct due diligence studies for owner-based organizations and private equity firms. Effective due diligence studies can provide the potential new owner detailed information about the condition and estimated future performance of an asset. Our personnel primarily come from operating company discipline technical backgrounds so we are able to quickly examine an asset from an Owner’s perspective. Becht brings standard, proven protocols used on many, prior due diligence efforts. We are able to “right size” the team based on the phase that the due diligence effort is in. Typical stages of due diligence reviews are listed below:
- Data Room Review:
- Our cross-functional teams efficiently screen the data room for relevant information to their discipline. Gaps in required documentation are consolidated and transmitted to the client. At times we are asked to draw preliminary conclusions based on information within the data room prior to subsequent stages.
- Phone Interviews:
- Becht subject matter experts interview select plant personnel (e.g. technical director, HSE director, etc) to further deep dive gaps identified during the data room review. This allows for improved visibility on identified gaps; an example would be further exploring the lack of a structured Corrosion Under Insulation (CUI) program which would expose the new owner to cost and risk.
- Site Visit:
- Select personnel from due diligence team travel onsite for a period of time to adequately walk-down the facility and interview plant personnel. We typically find this is the most valuable stage of due diligence given the ability to view the assets in person and have deep discussions with plant personnel on operating history, prior failures, historical investments, and additional items. Daily sessions are hosted with the current owner and potential buyer to discuss findings and path forward.
- Report Development:
- A consolidated report is developed focusing on items/gaps driving significant capital expenditure, or, risk exposure to the new owner. Gaps are prioritized by their importance on Health, Safety, Environment (HSE) and risk. A "road map" is provided for future asset performance improvement. Additionally, Becht can evaluate competence of plant personnel when requested.
Becht Engineering Due Diligence teams typically comprise select specialists in maintenance, operations, reliability, machinery, stationary equipment, process technology, refinery economics, instrument, electrical, control systems, process safety management and environmental. Our cross-functional teams are customized to target specific areas of concern for a prospective owner. Becht specialists are experienced in major refining, petrochemical and chemical companies continuing our tradition of “Engineering From an Owner’s Perspective.”
Becht has performed many Due Diligence assessments for our clients worldwide.
A sample listing of recent efforts are noted below:
- U.S. Refiner - Mechanical integrity, maintenance, process safety, and electrical due diligence review of Northern US Refinery asset. Data room review, site visit, and multiple remote conference call interviews with select plant personnel. Developed comprehensive report including major findings in each discipline with projected financial impact.
- U.S. Petrochemical – Multi-discipline due diligence review for petrochemical facility acquisition. The facility was a component of a major grassroots petrochemical plant project. Data room review and onsite facility walk-down including select personnel interviews. Issued report documenting condition of assets in specific areas (e.g. equipment classes, reliability work processes and systems, turnaround systems, etc) and prioritized key concerns.
- Private Equity - Mechanical integrity review of mid-stream assets including pipelines and terminals for potential acquisition. Data room review and site visit. Reported observations and provided prioritized recommendations.
- Private Equity - Multi-discipline engineering due diligence review for successful major east coast refinery acquisition. Mechanical integrity, maintenance, electrical & instrumentation evaluation of existing refinery conditions, programs, practices and personnel. Reported prioritized gaps and recommendations in report format.
- Private Equity - Multi-discipline engineering review of mid-stream assets for West Coast pipeline acquisition. Data room review and brief site driving tour to review facilities. Select interviews with pipeline personnel to understand programs. Developed brief report highlighting areas of concern.
- Private Equity - Due diligence effort reviewing cost versus risk for major turnaround in support of refinery acquisition. Private equity group had concerns with upcoming turnaround maintenance spend versus benchmark expectations. Performed deep dive on turnaround risk and issued report documenting findings.
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