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Pre-Financing / Pre-Acquisition
Due Diligence
Construction Project Management & Financial Consultant
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 include
the following:
- Qualifications of
contractors and vendors
- Organizational structure,
- Contract terms and
conditions
- 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 ongoing operating costs and other factors.
- Business Operations
- Ongoing 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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