Technical Due Diligence

Vercity are specialists in providing technical due diligence that supports the decision making of commercial transactions, whether in relation to debt, acquiring shares, or considering variations to a project.

Working across many sectors, including healthcare, education, housing, highways and renewables, we can assist at every stage of a project’s lifecycle. We can support bidding consortia, monitor construction and operational phases, and review operational assets to support variations, acquisitions and disposals.

The need for technical due diligence

With the prudent use of private capital remaining an essential keystone for delivering projects in the private, public and regulated sectors, the need for technical due diligence will continue to be an essential component of any transaction.

We understand risk from the perspective of the debt provider and the asset owner, and ensure that risks are articulated clearly and unambiguously, providing early warnings where possible.

Before a debt provider can support a construction project, a technical advisor needs to assess all technical aspects, as a key condition precedent. At Vercity, our specialist team will articulate the technical project risks and verify appropriate mitigation, ensuring it’s properly costed and managed.

In considering operational PFIs, we have developed our own robust models and systems, whereby we can interrogate the various commercial positions, such as payment mechanism calibration, default and termination, liability caps and life cycle costing.

For debt providers – supporting the lending decision

Effective technical due diligence ensures that the investment and lending decision has been made as a result of the careful review and assessment of all the project risks and the underlying security package.

As a debt provider, you need a clearly articulated evaluation of all the technical areas of a project to ensure it is set up to succeed, minimising the risk to debt servicing and a successful project exit.

At Vercity, we understand and appreciate the dynamic between lenders and their clients. Our technical due diligence is conducted in such a way that borrowers are kept onside without compromising the necessity to evaluate the project risk profile for the lenders.

For investors – confident decision making

Before investors acquire, or dispose of shares, or consider changes to an operational PFI project, performance and all the technical elements of the asset needs to be assessed. At Vercity, we will evaluate a wide range of technical issues and consider how project matters are being managed and how risks are mitigated.

We have a deep knowledge of what a successful project looks: its technical components, its management systems and its commercial structure. In taking the time to understand your needs, we can bring that knowledge and experience to support your decision making with confidence.