Technical due diligence for companies and investors

Technical Due Diligence for companies and investors is a specialised analysis that assesses in detail the physical, functional and regulatory status of assets and facilities prior to a sale, investment or merger transaction. This study identifies technical risks, investment needs and potential obsolescence, providing key information to accurately value assets and ensure safe and profitable decisions.

We are a leading company with more than 30 years of experience in advising companies in the areas of Consultancy and Valuation. Having the support of an independent consultancy firm such as Gesvalt to carry out technical Due Diligence provides rigour, objectivity and confidence in strategic decision making.

What is technical due diligence?

A Technical Due Diligence is a comprehensive analysis of the physical, functional and regulatory status of an asset, facility or infrastructure, conducted prior to a sale, investment or merger process. It aims to identify risks, investment needs and improvement opportunities to support business decision making.

Technical analysis for sale/purchase, investment or merger processes

This study includes a review of the structure, systems, maintenance, compliance and service life of the assets. It assesses the technical feasibility of the operation and estimates the costs associated with necessary repairs or upgrades.

Differences from other types of Due Diligence: legal, commercial, corporate

While legal due diligence focuses on legal and contractual aspects, commercial due diligence analyses the market and positioning, and corporate due diligence examines the structure and organisation of the company, technical due diligence focuses on the physical and operational state of the assets involved, providing key information to prevent technical and economic contingencies.

When is technical due diligence needed?

Real estate or industrial transactions

When it is required to verify the technical condition of buildings, installations or equipment before formalising the sale and purchase, ensuring that the agreed value reflects their actual condition and possible future costs.

Mergers, acquisitions or capital inflows

In corporate transactions, it helps to identify technical risks and investment needs that may affect the value of the company, ensuring that investors or buyers have reliable information for their decision.

Asset valuation in financing or restructuring processes

To support appraisals and negotiations with financial institutions, providing an objective diagnosis of the condition and operational capacity of assets as collateral or as part of a restructuring plan.

What aspects are assessed in a technical due diligence?

Physical condition and functionality of assets

In a technical due diligence, the structural condition, the operability of the systems and the maintenance performed are analysed, verifying that the assets fulfil their intended function.

Technical, regulatory and maintenance risks

Defects, non-compliance and potential failures that could lead to costs or downtime are identified.

Estimation of necessary investments (capex) and obsolescences

Short, medium and long term investments are calculated to ensure operability and possible technical or functional obsolescence is detected.

Compliance with town planning, environmental or safety regulations

Finally, the technical due diligence report includes a review of the asset for compliance with applicable laws and regulations, avoiding legal contingencies and penalties.

What sets Gesvalt apart in technical due diligence services?

Multidisciplinary team with expertise in architecture, engineering and valuation

At Gesvalt, we have specialised professionals who combine technical, construction and asset valuation knowledge.

Integral analysis: technical, documentary, regulatory and economic

We conduct a comprehensive review ranging from physical condition and regulatory compliance to economic impact.

Deliverables tailored to bank, investor or audit criteria

Our reports are clearly prepared and structured according to the standards required by financial institutions, investors and auditors.

Types of Due Diligence: technical, legal, commercial and supplier due diligence

Legal Due Diligence: corporate structure, contracts, legal risks

The Legal Due Diligence analyses the corporate structure, the validity of contracts and the possible legal risks that may affect the transaction.

Commercial Due Diligence: market, customers, competition, viability

For commercial due diligence, the market, customer base, competition and viability of the business model are assessed to support decision making.

Supplier due diligence: solvency, compliance and dependency

In the Due Diligence suppliers will examine financial solvency, contractual compliance and the level of dependence on strategic suppliers.

Corporate Due Diligence: 360º view of the target company

The Corporate Due Diligence, integrates technical, legal, commercial and financial analysis, offering a global and detailed vision of the target company.

Frequently Asked Questions on Technical Due Diligence

What is included in a technical due diligence report?

It includes the assessment of physical and functional condition, regulatory compliance, identification of technical risks and estimation of necessary investments (capex).

How long does it take?

A Technical Due Diligence is usually completed within one to four weeks, depending on the complexity of the asset and the availability of documentation.

Who should bear the cost of Due Diligence?

Generally the buyer bears the cost of the Due DiligenceThe terms of the agreement may be agreed between the parties depending on the type of transaction.

Is it compulsory in a sale and purchase?

It is not compulsory by law, but carrying out a Technical Due Diligence is highly recommended to prevent risks and make informed decisions.