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.
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.
- 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.
- 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.