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Pre-Financing / Pre-Acquisition
Due Dilligence
On major transactions,
typically greater than $20 million, lenders generally
seek an independent opinion of a project or acquisition's
viability for the benefit of other participating lenders,
governmental review agencies, and corporate compliance.
For these projects, Synergen Consulting's services include,
but are not limited to:
- Project Management
- Project scope and time scheduling are reviewed for
reasonableness and likelihood of success. Factors
influencing the success of a large scale project such
as personnel, systems and procedures, qualifications
of contractors and vendors, organizational structure,
contract terms and conditions, technology, and previous
successes and failures are a few of the project risk
factors analyzed. Approximately 50% of all projects
exceed the planned work scope and project duration,
often at considerable cost to the owner and lender.
- Economic Viability
- Economic assumptions used to justify the project
are reviewed, including the macroeconomic assumptions,
the owner's estimated productivity and profitability
assumptions, and the economic assumptions utilized
in the project costs. Many projects fail to realize
their expected return due to improper economic assumptions
of on-going operating costs and other factors.
- Business Operations
- On-going operations of the project and enterprise
are reviewed to identify "best practices"
improvements to the existing operations and enhance
operations after project completion. In many cases,
our recommendations lead to enhanced profits far in
excess of the project review costs. Improved operations
and profitability reduce the lender's risk in the
project.
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