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Shipping company due diligence

Client: A European shipping company

A European shipping company was seeking financing from a multinational financial institution. The financial institution contacted Drewry to conduct a detailed assessment of the company and analysis of market conditions.

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Client Objectives

The client requested the following from Drewry:

  • To assess the company’s vessel acquisition plan and comment on vessel specifications, company’s resources and commercial management capabilities;
  • To conduct a broad review of the proposed market for the vessels;
  • To undertake environment, health and safety due diligence of the target company’s business.

Drewry Approach

  • Overview of dry bulk market, supply and demand analysis;
  • Overview and assessment of the freight market dynamics and operating cost of the vessels;
  • Technical due diligence of the existing vessels of the target company to ensure seaworthiness of the vessels;
  • Review of shipbuilding contracts;
  • Detailed environment, health and safety due diligence of the company’s business;
  • Review of company’s business plan;
  • Competitive analysis of the target company.

 

Results Achieved

  • Technical due diligence and review of company’s newbuilding contracts revealed the soundness of the ongoing business and business plan;
  • The funding agency went ahead to provide a senior loan.

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