When a global private equity firm wished to acquire a major European mass transport operator, Hickman Shearer were hired to compliment the due diligence report with capital asset advice.
The assets broadly comprised of a mix of rolling stock and buses.
As is often the case, when a heavily capital asset reliant company is offered for sale there is an imbalance in VDD information biased in favour of financial and operational information. This can also be combined with very little in support of the capital assets that often define the business.
Our work was extensive and performed under very short deadlines to advise upon a variety of issues such as asset profiles, lease obligations and risks, remaining useful lives and replacement cost estimates, and regulatory issues.
As a result of our work, it was critical in helping assist the purchaser win exclusivity and the opportunity to make the acquisition.