Due Diligence for the Acquisition of an International Construction Company

Goldman Sachs were looking to place significant investment in a SE Asia based construction company that produces large scale residential and hotel buildings using volumetric modules. The modules and building facades are manufactured in SE Asia and then shipped to Australia, New Zealand or Singapore for construction. The projects range in size from single dwellings up to 10 storey, 400 apartment buildings. The Company has significant growth plans that require external investment.

TBH’s Role

Goldman Sachs engaged TBH as their technical advisor to:

• Review of the 2 NZ sites, existing and new factory site (including physical site visits)
• Assessment of competitive advantage (Qualitative and Quantitative) over traditional construction as well as competitors
• Review appropriateness of key participants including consultants, contractors and suppliers
• Proposed CAPEX/OPEX budget adequacy for each project, including the new factory and risks / options to mitigate
• Achievability of construction completion within proposed timeframes for each project including assessment of method statements, permitting and identification of risks/ options to mitigate
• Assessment of contractual, legislative and requirements and certification framework to identify gaps or elements that are out of alignment with standard industry practice
• Financial model validation to confirm forecast cashflow estimates, margins, EBITDA and contingency allowances
• Adequacy of the organisational structure to deliver and sustain the growth plan
• Review of capacity for scalability

The TBH Difference

TBH was deeply involved in preparing the business case for the investment that was approved by Goldman Sachs’ New York investment committee. Our experience with modular construction, cross regional experience as well as deep experience in manufacturing and construction allowed us to effectively advise the investors, identify risks and develop solutions to mitigate.

To find out more about TBH’s Strategic Advisory Services Capability expertise, please visit the Strategic Advisory Services Capability page.