Technical Due Diligence

Insight Solutions Global delivered a detailed 105-page Technical Due Diligence report to help the client make the decision to invest an US company whose operation center and supply chain are in China.

About the client

Industry: Capital firm

Product: Solar electricity systems

Company Size: Large company (US$ 25 billion)

Location: South Africa

Challenges

  • The client and their co-investors wanted to invest a US company whose operation center and supply chain is based in China; 
  • Lacking of experience in technical due diligence on solar electricity system company, the client reached out for assistance; 
  • Without sufficient data or deep insights into the target company’s capabilities on product development, operations, manufacturing, quality control and supply chain management, the client faced a lot of risks investing the company; 
  • The client had reached out to other consulting firms to no avail due to capability and/or cost problems. 

How we helped

Part of the Supply Chain Management Situation Forecast in the Technical Due Diligence Report
  • Delivered a comprehensive proposal, demonstrating the scope of work, checklist, tasks, deliveables, methodology, approaches, and more; 
  • Proposed a due diligence plan and detailed checklist
  • Reviewed and aligned with the client on risks identification on key areas
  • Organized the technical due diligence project kick-off meeting, with the client and the company who were potentially invested attending;
  • Defined the requirements, processes, communication channel, roles and responsibilities, and more on the meeting; 
  • Did individual and group interviews at the potentially invested company and its suppliers’ employees;
  • Verified the spreadsheets, charts, presentations, emails, records;
  • Walked through the target company’s offices and its suppliers’ factories from incoming to outgoing to review the infrastructure including people, processes and systems;
  • Had 6 project meetings to review, verify and validate all data sources and the accuracy and feedback; 
  • Identified all major and minor risks and provided insights and recommendations; 
  • Clarified client’s concerns and questions before making the investment decision. 

Results

  • Delivered a 105-page comprehensive Technical Due Diligence and Red Flag report, which included the Executive Summary, Top 5 Pros and Cons, SWOT analysis, Detailed Finding in product development, operations, manufacturing, quality control, supply chain and Proposal and Recommendations of investment; 
  • Customer invested the target company after our suggestion.  

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