Best practices for diligence on an equipment-intensive business?

by a searcher from Boston College - Wallace E. Carroll School of Management

2 years ago

Looking for searchers with experience evaluating the asset quality of an industrial services business. Are there any resources or consultants that you found helpful? How did you get comfortable that the assets were high quality and well-maintained?

1 like
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2 comments

searcher from Pennsylvania State University

This is something I wish I had focused on more during diligence. In hindsight, I would have hired a mechanic to go to the company and inspect the vehicles and machines - this would have likely indicated that assets had been heavily used and were likely to require some unplanned maintenance. Instead (due to time constraints), I just looked at historical repair/maintenance spend, which was pretty consistent; this implied at the very least the owner hadn't stopped spending money and delayed repairs due to the sale (always a big concern).

2 years ago | like reply | 0 likes

professional from Bentley College

DueDilio might be helpful here. We're modernizing the M&A due diligence process by connecting searchers with quality, pre-vetted due diligence service providers. Simply submit your project, review proposals, and hire a diligence expert.
We have several providers that can help diligence physical assets. https://www.duedilio.com

2 years ago | like reply | 1 like

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