Due Diligence

Roskill has experience of working with vendors and potential acquirers of businesses and assets within the mineral and metal markets. On the vendor side, Roskill can assist with information memorandium preparation and Q&A support, while for potential acquiers evaluating vendor information and participating in information gathering meetings.

Case study 1: Sale of a non-core asset

Scope

A major mining company was selling a non-core asset and required an independent market report showing the competitive landscape and future industry trends.

Approach

  • The competitive position of the vendor’s business was established including comparative analysis of asset quality and life-of-mine
  • Future market trends were analysed including particular deep dives into market sectors satisfied by the products produced
  • Information about product marketing and a competitor SWOT analysis was obtained through market interviews with consumers
  • Pricing and price forecasts were produced based on supply-demand analysis and game theory

Result

An in-depth report and PPT summary was used in the dataroom supporting the vendors own analysis; the asset was sold to an aspiring existing producer looking for diversification for above market value.

Case study 2: Acquisition of an industrial mineral mine

Scope

A private equity company was bidding for an asset subject to divestment from the parent company and needed strategic advice on the competitive position of the business on which to base its investment decision.

Approach

  • The general product market was surveyed to understand the landscape and competitive position of the target business resulting in a deeper understanding on product quality
  • A technical review of the products was undertaken to establish the mineral characteristics keeping the supplier competitive in the marketplace
  • In-depth analysis of the specific markets for the product established the growth trends and substitution risks
  • Options for creating marketing functions kept by the parent company from the operating asset were made alongside potential experts to recruit into the new business

Result

The asset was acquired by the client and sold five years later after achieving multiple EBITDA growth.

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If a specific commodity report does not provide a solution to your needs, then Roskill’s consulting division can provide deeper insight.

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