Indufor carried out a raw material supply, production technology and market due diligence of a German sawmill company for a potential buyer. The due diligence covered the valuation of two different sawmills of the company.
The objective of this project was to analyse and assess:
• The raw material situation and future availability and costs of sawlogs.
• Competitiveness of the mill concept and quality of the existing production assets.
• Target markets and the marketing concept.
• Selected forecasts in the Company’s business plan.
Indufor’s team visited both mills to observe the operations on-site and familiarized themselves with the available reports. In addition, our team reviewed Indufor’s databanks and gathered other data to determine whether the input assumptions were realistic, especially about the raw material availability and prices, end product prices and input cost development and cost competitiveness. The project team also reviewed the financial models used as a basis of the target company’s business plan and adjusted them to reflect the Consultant’s view of the future markets and costs.
For further information, please contact Jarno Seppälä.
