Services
Due Diligence for Investors

Depending on the sector, a fundraising or investment proposal may contain a large number of technical assumptions and assertions, whose impact on likely profits and returns may be even more fundamental than the business plan’s financial and commercial assumptions.

TEC can assist investors by reviewing and commenting on the credibility and/or verifiability of these, ranging from objectively verifiable issues (e.g. checking the sales growth assumptions against the current capacity of the production plants and the amount of capital expenditure allowed for their future expansion), to more subjective matters (e.g. risks involved in taking a technology “proven” in the laboratory to the full commercialisation).

Independent Technical Assessments for Fundraising Companies

For technically-focused companies, the inclusion of an independent technical review in the fundraising documentation is increasingly a necessity (to sit alongside similar reports by independent accountants, intellectual property lawyers, etc.). This is specially the case for initial public offerings (IPOs), but may also apply to the larger or more technically problematic private equity fundraisings.

Even when not required by financial advisers managing the fundraising process, the existence of an independent technical report simplifies and expedites investors’ decision making process.

TEC has experience of preparing such reports and is able to accommodate the exacting standards required by investment banks in such situations.

Due Diligence for Corporate Transactions

Depending on the technologies involved, TEC may be able to project manage and/or assist in the technical due diligence of a target company in a variety of ways including:

• Review and interpretation of technical facilities and data
• Technical competitor analysis
• Liaison with intellectual property lawyers in assessment and interpretation of intellectual property assets and rights
• Liaison with financial advisers in preparation of valuations and bid prices

In case of technically-focused acquisitions, TEC may also be able to assist in the search and selection of potential targets.

Valuations

For technical companies and assets, a valuation is meaningless without reference to the underlying technical issues such as competitiveness, compliance with technical regulations, life span and obsolescence, risks posed by competing technologies, etc.

TEC can inform these aspects of corporate or asset valuations, working with companies and/or their financial advisers.

Technical Support for Sector Mapping and Investment Planning by Funds and Donors

Even the largest of the investment funds cannot cover everything. Priorities must be set, usually by reference to a review of the space involved, identifying areas which most closely match the objectives of the fund (e.g. balance of risk/return, timing of exit, etc.)

Similarly, regional development agencies and other public bodies entrusted with using public funds to support certain entrepreneurial and/or R&D activities, must select priority areas in order to make best use of their funds in relation to their objectives (e.g. employment generation, pollution reduction, expansion of the nation’s technical base etc.).

TEC can assist in the technical aspects of such mapping and planning exercises, for example helping with the ranking of technologies against a set of objectives.

Review of R&D Programmes

Long term R&D programmes represent significant investments for the corporates that undertake them and their shareholders. Without clear objectives and monitoring, these can become cost centres which never yield useful results, or whose results are never properly commercialized.

TEC can assist in the review and design of R&D programmes, based on TEC team’s own direct experience of such programmes.

Progress Monitoring for Investors and Donors

Investors and donors generally invest on basis of certain promises and projections. A post-event independent assessment and monitoring of these on behalf of shareholders and donors may be necessary, for example where payment of certain tranches of an investment or grant is conditional on achievement of certain technical targets.

TEC can carry out such post-investment monitoring activities on behalf of shareholders and donors. TEC can also assist companies who wish to act proactively by assisting in the preparation of such updates on a voluntary basis.

Temporary Provision and Selection of Senior Level Resources

Depending on availability, TEC may be able to second its senior staff to a client on a part-time or temporary basis. The role could for example include acting as a client’s representative on major industry bodies or lobbying groups, or acting-chairmanship of a technology-based company undergoing transition (for example, in preparation for an IPO).

TEC may also be able to assist in the selection process for permanent senior technical staff. This could include assistance in the formulation of the job specification, initial review of applications, or participation in selectionpanel interviews. In their own fields of expertise, the members of the TEC team may be able to use their network of contacts to help in the identification of suitable candidates.

Grant and Funding Applications

TEC staff are involved with a variety of public policy initiatives and government programmes within the United Kingdom, the European Union and the US.

As a result, TEC may be able to assist companies by identifying matching grant and funding sources and if appropriate, assisting in the application process.