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Due Diligence (technical)

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Definition: Technical due diligence is the structured assessment of technical plants, production processes, maintenance strategies and material conditions in the context of transactions or investment decisions. The aim is to identify technical risks, maintenance backlogs and regulatory deviations. It provides a fact-based decision-making basis for buyers, investors or lenders.

Practical relevance: The assessment covers plant condition, remaining service life, compliance with standards and directives (e.g. BetrSichV, Pressure Equipment Directive 2014/68/EU), the state of documentation as well as CAPEX/OPEX risks. Inspections include site walk-throughs, document analyses, material assessments and spot measurements. Identified deficiencies can affect the purchase price, warranties or provisions.

Decision-making perspectives:

  • Technical decision-makers: Assessment of plant integrity, modernisation needs and safety reserves.
  • Purchasing/project management: Derivation of investment, refurbishment or integration measures.
  • Science: Methodological evaluation of condition analyses and service life models.
  • Insurance/law: Documented evidence of risk, liability assessment and compliance review.

Typical testing or verification methods: Document audit, on-site inspections, non-destructive testing (NDT), remaining service life analyses, RBI assessment.

FAQ:

  • What does a technical due diligence cover?
  • It covers the systematic assessment of plant condition, safety, compliance with standards and investment risks.
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