Sunday, September 13, 2015
The client was proposing to invest in a new joint venture between major international vehicle groups to produce engines and transmissions in Russia. Due diligence was required to assess the technical and market-related risks facing the proposed JV.
To provide a detailed risk assessment and recommendations concerning:
- The JV partners’ objectives and strategies
- Plant and equipment acquisition and the appropriateness of the production processes
- Project management and timetable
- Technology status of the products of the JV
- International and local sourcing prospects for the JV
- Pricing arrangements and the customer base for the products of the JV and the downstream market prospects for the principal customers
- Potential market volatility caused by changes to government regulations for investment and foreign trade
- Competitor analysis
- The financial plan and its sensitivities
- The JV agreement and its appendices
A detailed risk analysis of the proposed JV, highlighting key risk areas, possible means of decreasing risk exposure as well as recommendations on the attractiveness of the proposed investment.