M&A Advisory and Due Diligence

A leading global asset and property manager was evaluating the acquisition of a portfolio of data centre assets valued at $900m. The portfolio consisted of stabilized and in-construction assets service both co-location and hypers cale clients. The client retained Level 0 to provide a fast-track assessment of all aspects of the commercial/financial performance, technical due diligence of assets (including site/structure, design and commissioning, traceability of customer requirements, and operational integrity) as well as a review of the construction projects and the EPC arrangements.

How Level 0 engaged

Within 48 hours of the client's instruction Level O deployed a multi -disciplinary team of six SMEs working onsite and remotely to:

• Perform desktop reviews of the data room. This included financial records and contracts, engineering schematics, and operational data.
• Conduct site visits to validate all aspects of the information provided in the data room.
• Lead workshops between the vendor and the acquirer to support structuring and the development of commercial terms (especially disclosures and warranties).
• Contribute to the development of a 20 year financial model (including life-cycle assessments and capex plans, and operational expenditure plans)
• Develop a red flag assessment (within 10 working days) to highlight major risks and to cost/plan mitigations.
• After the red flag review to complete deep dive assessments of all design and engineering artefacts, commissioning records and results.

Outcomes

The client benefitted from:

• Rapid deployment of market leading SMEs.
• A pragmatic and phased approach to the due diligence and with several decision gates to help contain investment and risk.
• Local knowledge and insight.
• Detailed deliverables with full traceability to the vendor's data room.