Buying a biotechnology project? What to expect from the independent engineer

Abstract

Previously, Shaw Consultants International, Inc. described what to expect from the independent engineer (IE) when financing a newbuild biotechnology project.¹ This article discusses the due diligence to support the acquisition of an existing, operating project or portfolio of projects and describes additional tasks performed by the IE and the significant risks evaluated. One important aspect of acquiring an operating facility is that the project has an operating history, unlike a new-build project. The purpose of the IE review is to provide performance and cost projections to the buyer for their use in establishing a purchase price for the asset and support financing and to identify and make recommendations about potential risks. If the projected economic performance is sound and future risks are identified, prevented, mitigated, and/or properly allocated among the stakeholders, the project more likely will be financeable.