Axion Consulting launches new Due Diligence+ service for waste sector investors
Published by Kathy Wilkinson for Axion Consulting in Environment and also in Central Government, Communities, Local Government
Axion Consulting senior engineer Simon Wilkinson
Materials processing specialist Axion Consulting has introduced a Due Diligence Plus service for investors in new waste resource recovery plants and technologies in response to rising interest and growth in these sectors.
Entrepreneurs and investors looking to develop new plants or process expansions can benefit from technical, operational, market and commercial due diligence advice to support their investment decisions and minimise risk.
Axion’s ‘Plus’ is an additional step that sets its service apart from conventional ‘arm’s length’ due diligence. This involves challenging or verifying the assumptions within the business plan and then taking positive action to help fill the gaps in process knowledge or market information, so that the overall business case is then a more complete evaluation of the investment proposal.
For example, having identified significant gaps in any business plan, Axion can carry out fresh market research to fill gaps about raw material availability and prices. Sampling and analysis to confirm waste stream composition or plant trials to check critical separation efficiencies in the process mass balance are among the extra services offered.
“What differentiates Axion’s DD+ services is that the key elements of market, technical and financial information are all supplied under ‘one umbrella’ by a single consultancy that already knows the waste recovery sector,” explained Director Keith Freegard. “We bring our own experience of managing waste re-processing businesses to help reduce technical and financial risk for clients, while adding value for investors and their entrepreneurial management teams.”
Axion can apply its due diligence services to any novel material processing and waste recovery technology, including sorting and separation of complex mixed recyclables and clean-up and refining of waste material mixtures derived as by-products from large-scale processing of waste streams.
The input and output streams can cover all materials types, including plastics, metals, textiles, paper, wood, glass and biomass. Processes involving energy from waste, anaerobic digestion, pyrolysis and liquid fuel products are also covered.
The DD+ service comprises a two-phase approach. The Phase One ‘Rapid Response’ provides an overview of the business plan based on Axion’s existing knowledge and experience. Phase One includes identifying any serious information gaps in the proposal.
This can be followed up with a complete analysis in Phase Two, including detailed responses on all aspects of the business plan from equipment selection, plant design and technology options to operating costs.
Axion recently carried out market due diligence for a company building a UK-based post-consumer mixed waste plastics recycling plant. Hands-on sampling and analysis of 20 tonnes of material identified over-optimistic assumptions for feedstock composition, resulting in a full re-think of the process and a revised business plan.
Following delivery of the DD+ service, a key investment manager commented: “I can honestly say that as a result of Axion’s involvement this plan is in a much better place.”
Keith added: “We will identify areas of risk and dubious business planning to improve the success of the plant and engage with the client to really add value for investors.”
Axion Consulting is part of the Axion Group that develops and optimises processing and collection methods to recover value from waste resources for a wide range of clients within the recycling and process industries. Axion designs and supports construction of innovative process plants for companies in the recycling sector, advising on plant design and equipment selection. It also helps with process optimisation and staff training once plants are operating.
For more information, contact Axion Consulting on 0161 426 7731 or visit the website - www.axionconsulting.co.uk.