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ACQUISITIONS: DO YOU KNOW HOW WELL THE PLANT PERFORMS?

机译:收购:你知道植物的表现有多好?

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Knowing how a plant performs is crucial in assessing the cash flows from a project. Yet, systematic studies of plant operating parameters are often lacking. Technical due diligence is not given the emphasis it deserves. Some investors treat this as an academic exercise – to be done in three days - while they focus on structuring the deals that accompany the purchase. Plant performance affects an acquisition in that it presents a risk that operation costs are higher than what is assumed for the cash flows, and that reliability and availability are lower than what the vendor makes them out to be. Some such risks could potentially be a ‘deal breaker’, better to be uncovered before major commitments are made. On the other hand, knowledge of ‘upsides’ gained through conducting thorough investigations and plant upgrading studies could reveal a ‘gold mine’ of an investment, and enable a higher bid price to secure the deal. This paper provides an insight into the methodologies for carrying out performance assessments as part of technical due diligence in acquiring power generating assets. It discusses the impacts of certain operating assumptions of gas turbine plants, in particular, their ageing characteristics. It also outlines the scope of work and responsibilities of a technical consultant. The paper draws upon the author’s recent experience to advise investors of power generation assets in Malaysia and Thailand.
机译:了解工厂如何表现如何在评估项目中的现金流量方面是至关重要的。然而,通常缺乏对植物操作参数的系统研究。技术尽职性调查并没有重视其值得。一些投资者将其视为学术练习 - 在三天内完成 - 虽然他们专注于构建购物伴随的交易。工厂性能影响了它的收购,因为它提出了运营成本高于现金流量的风险,并且可靠性和可用性低于供应商使其成为现实的可靠性和可用性。一些这种风险可能是一个“交易破碎机”,最好在大致承诺之前被发现。另一方面,通过进行彻底的调查和植物升级研究,对“upsides”获得的知识可以揭示投资的“金矿”,并使更高的出价来确保该交易。本文介绍了在获取发电资产中的技术尽职努力的一部分,介绍了执行性能评估的方法。它讨论了燃气轮机厂的某些操作假设的影响,特别是它们的老化特征。它还概述了技术顾问的工作范围和责任。本文借鉴了作者最近的经验,建议马来西亚和泰国发电资产的投资者。

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