Product

Technical due diligence

EconomicsHuman ResourcesInfrastructureIrrigationOrganic

Technical due diligence comprises a fair and independent analysis of all technical aspects of the targeted farming enterprise with the objective of assessing its viability and interest for acquisition or its capability of integrating third party existing ventures.

FGM International implements a unique approach which has evolved from its extensive know-how in the practical management and development of agricultural projects. We do that in order to assess the current technical and economic results of the target project. This process also aims to confirm the business plan’s feasibility in view of further project development in the future. Technical due diligence will reassure the stakeholders regarding the estimates of CapEx and OpEx requirements, as well as, the realism of the production scenarios.

  • Review of the historical technical parameters of the targeted enterprise: natural resources and conditions, achieved yields and evolution, crop husbandry plans, available staff and organization.
  • Evaluation of the available assets’ status, capacity and comparison with production parameters (area, target crops and potential).
  • Review and validation of the Business Plan related to crop and/or livestock production, technical assumptions’, and review of the total productive area.
  • Review and validation of key economic assumptions of the Business Plan related to selling price, input costs, energy costs, maintenance costs, HR costs, other fixed costs and amortization plan.
  • Analysis and validation of all key financial assumptions including the cash flow perspective and forecast.

Prerequisites to deliver the product

  • Technical and economic records,
  • Business Plan,
  • Company strategy.

Deliverables

We deliver a technical note presenting the findings, go/no-go statement concerning the investment and areas for improvement (including an updated business plan). The technical due diligence is usually delivered within 10 working days after receipt of the order.



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