Case study TDD

Comprehensive asset valuation focusing on Technical Due Diligence

Manufacturer of cosmetics and household products benefits from TÜV SÜD's know-how in the service provider's assessment of a strategically critical takeover target.

_{(July 2009)}

Ever-shorter transaction times bring increasing challenges for the detailed investigation of all risks and opportunities involved in a takeover. A due diligence review must be thorough, reliable and informative as it forms the basis of investment decisions. In only three weeks, TÜV SÜD Industrie Service prepared a comprehensive valuation report of production plants and logistics facilities which had been targeted for takeover by hair-care manufacturer KPSS – Kao Professional Salon Services.

"Our wide range of expertise enabled us to provide a reliable valuation in spite of the time pressure under which we were operating", notes Dr Rolf Zöllner, Risk Manager at TÜV SÜD Industrie Service. "Thanks to our quick and efficient valuation, KPSS was able to prevent the assets from being taken over by a competitor in the intervening period."

Integrated valuation

Technical Due Diligence (TDD) delivers important information about the value and sustainability of technical assets. In addition to pure PP&E Due Diligence, TÜV SÜD Industrie Service also carried out Real Estate Due Diligence and Environmental Due Diligence. Based on these due diligence results, the experts then calculated the value in use, fair value and market value of the plant and facility complex. Further add-value services included proposals for cost-efficient refurbishment and optimization.

Realistic forecasts from a single source

A critical factor in KPSS' decision in favour of TÜV SÜD Industrie Service was that the service provider uses customised interdisciplinary teams for due diligence reviews, combining comprehensive expertise from building and plant engineering, environmental and energy engineering, property valuation and structural surveys as well as from evaluation of the technical equipment and processes. This approach permits an integrated assessment of the potential performance of a property while ensuring the maximum time efficiency and transparency.