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The Objective
Banks, funds, financial institutions, equity holders and/or other project owners have to understand and mitigate all risks before deciding to finance a project. An independent technical advisor can review the underlining business case and verify that the investment is feasible from technical, environmental and economic point of view.
The Solution
Due Diligence is part of the financing process and includes the evaluation of an investment opportunity before committing funds. This review is often conducted by an independent third party, such as SGS, at the approval phase of a project to identify and mitigate:
- Technical and operational risks
- Environmental and social risks
- Economical risks
SGS experts evaluate the risks’ probability of occurrence and their potential impact on the project.
Due Diligence helps avoid unexpected costs overruns and delays by identifying and mitigating risks before the investment occurs.
Due Diligence for Industrial Sectors
SGS can perform due diligence for both Greenfield and Brownfield projects for a variety of industrial sectors, including:
- Agriculture
- Power Generation and Transmission
- Renewable Energy
- Oil, Gas and Chemicals
- Infrastructure and Transportation
- Mining and Metals
Our Services for Due Diligence
SGS carries out the following types of Due Diligence:
- Technical Due Diligence: Review of the technical feasibility of a project or an acquisition, including evaluation of technical specifications, site, suppliers and subcontractors assessment
- Environmental Due Diligence: Review of the potential environmental and social impact of projects according to the clients’ requirements or prevailing international standards such the IFC Performance Standards or the Equator Principles
- Economic Due Diligence: Evaluation of estimated costs, budget and financial model from technical perspective. Review of the underlying rational of key assumption, e.g. productivity, input and output. Identification of possible cost overruns and revenue loose with a comparison to similar project costs.
Why SGS?
SGS has a worldwide pool of project specialists, technical and environmental experts, in a variety of industry sectors, providing advice at all stages of the financing life cycle. We perform dedicated project management and provide comprehensive advisory services during the entire project.
More about SGS Project Finance Services
In order to protect project investment, SGS offers Due Diligence combined with other Project Finance Services such as Technical Surveys, Feasibility Studies, Market Studies, Project Certification, Project Management, Project Monitoring, and many more.
Send us your inquiry for Due Diligence now.
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