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.
Becht Due Diligence is a structured process where an expert team using a flexible protocol provides a detailed evaluation of an asset.   Becht Engineering personnel have extensive experience in conducting due diligence assessments -- our personnel have led or comprised teams for over 20 Due Diligence assessments of refineries and chemical plants.

Due Diligence - Making Rapid, Accurate Judgements

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

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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...
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Due Diligence - Front End Loading for Plant Acquisitions

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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...
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PSM Implementation is a Challenge -- Maintaining Compliance is Even Harder

PSM Implementation is a Challenge -- 
Maintaining Compliance is Even Harder
The Process Safety Management rule (PSM), OSHA 1910.119, was implemented in the early 90’s, more than 20 years ago. Implementation was driven by a number of tragic accidents in the process industry. However, despite the long history of the rule and multiple preventable, catastrophic incidents, many companies still have not fully implemented PSM. Companies that have implemented the PSM rule often find it very challenging to maintain compliance.  Becht Engineering has conducted numerous PSM, due diligence and mechanical integrity audits and discovered deficiencies in PSM compliance. We have even discovered major gaps in some facilities that have done well during OSHA audits. These plants were generally located where there are limited numbers of hydrocarbon and chemical processing facilities. OSHA simply lacked the local resources and skills to perform adequate audits. These plants can be highly vulnerable to both incidents and fines since they may assume everything is in compliance. In...
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