Helping Investors Evaluate Manufacturing Risks |
Is the target manufacturing company what they say it is?
When you look closely, are the observed operational realities consistent with the levels of projected operational performance?
How do observed differences affect the amount of cash the operations can really produce? How do they affect the amount of capital really needed to properly maintain and grow the company?
Before you invest you need to know the following about the target operations:
- Does a close review suggest more cash will be available than projected? This happens more often than you might think. Capex could be overstated; operational performance understated -- operations would contribue positively to deal value.
- Does a close review suggest less cash will be available than projected? The usual finding. Most investors throttle projections back but wouldn't it be nice to know how far back you need to go with more precision?
- Does your target have any hidden operational deficiencies that represent serious investment risk that might in turn represent a deal breaker? This is a rare finding but is perhaps the most important in protecting fund integrity.
Charlie Reid & Associates provides a highly specialized and unique technical due diligence service to Boards of Directors; and Private Equity, Mezzanine Debt, and Venture Capital Investors focused on answering these questions and quantifying the results.
If the risk of making a mistake is high, call us to discuss how we might be able to add value in your investment decision process.
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