Due Diligence Assessments

Challenge

A global automotive components manufacturer, needed to understand the investment profiles (as well as state / government linked incentive structures) of three new, multi-million dollar, green field competitor factories in the U.S.A. and Latin and Central America (various provinces). In detail, needed insights were linked to:

• CAPEX (land, site preparation, building, utilities, machinery, engineering etc.)
• Financial deal structures with lending entities, staffing levels and compensation principles
• Capacities, production methodologies and key machinery.

Our client was in the final stages of selecting the location and investment profile of its new factory and needed to benchmark its own approach to recent competitor investment approaches, especially linked to unit output per day / $ invested (as the overall key metric).

Outcome

The triangulated evidence pool gathered and associated analysis, allowed our client to truly understand not just the relationship between plant capacity and $ spent for the various competitors, but also provide a unique qualitative insight into how they overall approach investment decisions, their critical factors and decision points, as well as well as shed light into their negotiation strategies in their interactions with state authorities, prior to final country and site selection.