- Technology and Marketing Due Diligence for Asset Exchange
Challenge: Chemical was asked to provide both technical and marketing due diligence for the exchange of olefin and polyolefin assets in South Korea.
Solution: We performed technical due diligence that included the evaluation of the technology employed, plant operating performance and a comparison of its cost structure versus other international competitors. We also conducted a rigorous replacement cost analysis along with marketing due diligence that included items such as products produced, marketing strategy, netback price versus the market, product specifications, number and duration of contracts and logistical capability.
Results: The client received calculated replacement costs for more than 14 different processes, as well as recommendations and market data used by the financial advisors to determine the economic value, structure, cost and timing of the asset exchange.
- Technical Consultant for European Merger and Acquisition Activity
Challenge: Chemical was retained as a technical consultant for an acquisition of a large European petrochemical company.
Solution: We performed site visits of facilities and evaluated process operations, maintenance, technology, cost competitiveness, safety and capital efficiencies. The acquisition team, made up of representatives from the client company, the financial advisor and our consultants, performed an in-depth competitive review using market and company-supplied data.
Results: As a result, we were able to provide the client with recommendations for future strategic planning.
- Independent Technical Consultant
Challenge: Project sponsors of a US$325 million n-paraffin facility and linear alkyl benzene plant located in the Middle East hired Chemical to act as an independent technical consultant.
Solution: We performed due diligence for pre-financial close that included technical review of the plant design, as well as integration with other facilities. We also conducted in-depth reviews of construction, cost and scheduling, permits, contracts, plant operations and environmental compliance.
Results: We provided technical advisory services to the lenders up to financial close. During the period from financial close until project completion, we made quarterly site visits to monitor the construction process and provided quarterly reports to applicable parties.
- Technical and Commercial Due Diligence for a Financial Transaction
Challenge: A financial firm retained Chemical to perform technical and commercial due diligence for a financial transaction.
Solution: We performed the technical due diligence, which included a review of data room documentation, a site inspection of operating and maintenance records, safety and environmental performance and discussions with facility personnel. The commercial due diligence included reviews of sales contracts and practices, feedstock purchase contracts and practices, and discussions of business practices with marketing and feedstock purchasing personnel. We analyzed this information against the backdrop of Chemical’s supply, demand, utilization rate, margin and pricing data.
Results: The client received a thorough technical and commercial audit for its proposed transaction.
- Technical and Market Assessment
Challenge: A multidisciplinary financial firm asked Chemical to provide an independent technical and market assessment of a project that involved the construction, start-up and commercial operation of an integrated refining and petrochemical complex in Indonesia.
Solution: We participated in the independent due diligence review of the technical, engineering and financial aspects of the project, as well as provided our outlook of the aromatics market related to the project and the underlying projection assumptions.
Results: The client received due diligence and the economic analysis necessary for making a decision whether to underwrite the project.
- Middle East Technical and Economic Aromatics Study
Challenge: Chemical was retained to conduct a technical and economic study that examined the viability of a world-scale aromatics extraction unit.
Solution: Our study reviewed various sources of aromatics potentially available to the project, compatibility of streams to be extracted and necessary preliminary treatments and/or separation. We estimated the cost of treatment of each stream and summarized standard separation techniques normally employed.
Results: As a result, we presented different possible outlines for the aromatics extraction plant and developed typical mass balances for each option based upon in-house knowledge of aromatics separation techniques. We also assessed the degree of integration possible for each of the process options.