TRC

Industrial Global Buy-Side Diligence

TRC's role as trusted advisor supported the buyer throughout the full deal cycle, providing support for the acquisition of the original platform company as well as the expansion acquisitions in the development of the final global company.

Industries

Client

Global Private Equity Firm

Project Location

International

TRC advised a global private equity Buyer in the acquisition ($900 M) of a platform company engaged in the manufacture and service of complex, heavy-duty conveyor equipment. TRC continued its support for Buyer’s expansion of the platform by providing diligence to the Buyer in its pursuit of four additional acquisitions of similar and adjacent specialty industries. The resultant global manufacturing and service company is now dominant in its sector.

The final portfolio was geographically and operationally diverse so TRC’s efforts required more than traditional site-specific environmental due diligence. TRC developed a due diligence strategy to advise Buyer in the identification, quantification and prioritization of material environmental risks. In order to allow Buyer to make informed decisions concerning the requirements for the overall environmental liabilities of the portfolio, TRC performed a Monte Carlo probability analysis which allowed for normalization of the uncertainty inherent with the liabilities estimates.

TRC’s diligence efforts were accretive, evolving with Buyer’s platform development. The deals closed and the Buy deal team had the data/information to make informed decisions.

Six years later, TRC assisted in preparing the asset for sale at significant Exit value. TRC built a data room for 50+ global operating plants, presenting the data and information so as to satisfy bidders’ concerns for environmental liabilities. The client was able to realize a significant sale price (>$2 Billion) and deal premium. (Note: The new Buyer/Owner is also a private equity firm and requested that TRC maintain our role as strategic advisor).

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