Technical Due Diligence for Acquisitions, Lending and Portfolio Review

Technical due diligence puts numbers against asset condition, remaining life, deferred maintenance and compliance liabilities before a deal closes, and itmad provides it for acquisitions, refinancing and portfolio review. The assessment quantifies its findings into a capital expenditure profile phased over one, three, five and ten years. itmad operates across the Middle East, Asia and Europe. Last reviewed: October 2026.

Why do it

A price is set on what the asset is worth now. What the asset costs to own is decided by what has been deferred, what is approaching the end of its life and what is not compliant, and none of that appears in the financials. Technical due diligence puts numbers against all three before the deal closes and not after.

What the assessment covers

Asset condition is judged by physical inspection of the plant, equipment, structures or property, comparing actual condition with age and with how the asset has been used. Remaining service life is estimated for each major asset or system, which determines when expenditure falls and not merely whether it does. Deferred maintenance, the work that should have been done and was not, is quantified; it is the largest hidden liability in most transactions, and the one a seller has the greatest incentive to leave undisclosed.

Regulatory compliance covers statutory inspection status, expired or missing certification, permit conditions and any enforcement history attached to the asset. A design and documentation review tests whether the as-built documentation, drawings and maintenance records actually reflect the asset, and what it means if they do not. Technical liabilities include contamination, structural defect, obsolescence, and systems that cannot be maintained because parts or support no longer exist, and operating cost drivers such as energy performance, maintenance burden and reliability history affect the running cost as much as the capital position does.

The capital expenditure profile

Identified expenditure is phased over one, three, five and ten years, so the buyer sees the shape of the commitment and not a single figure. The same cost weighs differently on a deal if it lands next year than if it lands in year eight, and a report that lists defects with no timing or cost is of little use across the negotiating table.

What the report provides

Findings are quantified and phased. Urgent matters (safety, compliance, imminent failure) are kept apart from planned lifecycle spending: the former can decide whether the deal proceeds, the latter bears on the price. The report states its assumptions and limits openly: anything that could not be inspected is named, together with what that means for how far the figures can be trusted.

Assets covered

Industrial and manufacturing facilities, process plant, refineries and terminals, power generation and utility assets, commercial, retail and mixed-use property, hotels and hospitality assets, warehousing, logistics and cold storage, marine assets, ports and vessels, and equipment fleets and rental portfolios.

When it is commissioned

Buyers commission it for an acquisition, ahead of price agreement or during an exclusivity period. Sellers commission it for a disposal, to know what a buyer will find. Lenders require it for a refinancing, as independent assessment of the security. It is also used for portfolio review, to establish a comparable baseline across several assets; before a lease or handover, ahead of taking on repairing obligations; for joint venture formation, where assets are being contributed; and for insurance placement, alongside valuation and risk engineering.

Working to the deal timetable

Due diligence runs on a deal timetable and not a technical one. The scope is agreed against the time available, and where the window does not allow full assessment, itmad states what has been covered and what has not instead of presenting partial work as complete. Restricted access during a confidential process is normal, and the work is planned around it.

Independence

Whether a deal goes ahead is of no interest to itmad. itmad does not act on a success fee, does not broker the assets that it assesses, and does not carry out the remedial work that it identifies. Whoever instructs itmad receives the findings exactly as found.

Related services

Technical due diligence is often commissioned alongside valuation, where the same inspection informs both asset condition and value, and alongside risk engineering where the insurance position forms part of the assessment.

Frequently asked questions

What is technical due diligence?

An independent assessment that puts numbers against asset condition, remaining life, deferred maintenance and compliance liabilities before a transaction closes and not after. The price reflects what an asset is worth today, while the cost of ownership depends on what has been deferred, what is near end of life and what is not compliant.

What does the assessment cover?

The assessment looks at how the asset actually is (condition and remaining service life), what has been put off (deferred maintenance), whether it complies, whether the documents match reality, what spending is coming and what it costs to run. Technical liabilities include contamination, structural defect, obsolescence and systems that can no longer be maintained.

What does the capital expenditure profile show?

Identified expenditure phased over one, three, five and ten years, so the buyer sees the shape of the commitment and not a single figure. The same amount affects a transaction differently when it falls next year and when it falls in year eight.

Why does the report separate urgent items from lifecycle expenditure?

Urgent items, meaning safety, compliance and imminent failure, affect whether a deal proceeds, while planned lifecycle expenditure affects the price. Assumptions and limitations are stated, including anything that could not be inspected and what that means for confidence in the figures.

When is technical due diligence commissioned?

For an acquisition ahead of price agreement, for a disposal where a seller wants to know what a buyer will find, and for a refinancing where a lender needs independent assessment of the security. Also for portfolio review, pre-lease and pre-handover, joint venture formation and insurance placement.

Does itmad act on a success fee?

No. itmad has no interest in whether a transaction proceeds, does not act on a success fee, does not broker the assets it assesses and does not carry out the remedial work it identifies. Findings are reported as found to whichever party instructed itmad.