Technical Due Diligence for Acquisitions and Lending in Norway

Technical due diligence puts numbers against asset condition, remaining life, deferred maintenance and compliance liabilities before a deal closes, and itmad provides technical due diligence for acquisitions, refinancing and portfolio review in Norway. The assessment quantifies findings into a capital expenditure profile phased over one, three, five and ten years. itmad has worked in Norway for more than 10 years. Last reviewed: October 2026.

Why technical due diligence

The price is agreed on what the asset is worth today. What the asset costs to own is decided by what has been deferred, what is approaching end of life, and what is not compliant, none of which appears in the financials. Technical due diligence puts numbers against the three before the deal closes rather than after.

What the technical due diligence assessment covers

• Asset conditionPhysical inspection of the plant, equipment, structures or property, assessing actual condition against age and against how the asset has been used.
• Remaining service lifeHow long each major asset or system has left before replacement, which determines the timing of expenditure rather than merely the existence of expenditure.
• Deferred maintenanceWork that should have been done and was not, quantified. Deferred maintenance is the single largest hidden liability in most transactions, and the liability that a seller has the greatest incentive to leave undisclosed.
• Regulatory complianceStatutory inspection status, expired or missing certification, permit conditions and any enforcement history attaching to the asset.
• Design and documentation reviewWhether the as-built documentation, drawings and maintenance records actually reflect the asset, and what the gap means if the records do not.
• Capital expenditure profileIdentified expenditure phased over one, three, five and ten years, so the buyer sees the shape of the commitment rather than a single figure.
• Technical liabilitiesContamination, structural defect, obsolescence, and systems that cannot be maintained because parts or support no longer exist.
• Operating cost driversEnergy performance, maintenance burden and reliability history, which affect the ongoing cost as much as the capital position does.

What the technical due diligence report provides

Findings are quantified and phased. An issue costing a given amount next year affects a transaction differently from the same amount in year eight, and a report that lists defects without timing or cost cannot be used in a negotiation.

Urgent items (safety, compliance and imminent failure) are separated from planned lifecycle expenditure, because the first affects whether the deal proceeds and the second affects the price. Assumptions and limitations are stated explicitly, including anything that could not be inspected and what that means for confidence in the figures.

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
• Equipment fleets and rental portfolios

When technical due diligence is commissioned

• Acquisition, ahead of price agreement or during an exclusivity period
• Disposal, where a seller wants to know what a buyer will find
• Refinancing, where a lender requires independent assessment of the security
• Portfolio review, establishing a comparable baseline across multiple assets
• Pre-lease and pre-handover, before taking on repairing obligations
• Joint venture formation, where assets are being contributed
• Insurance placement, alongside valuation and risk engineering

Working to the deal timetable

Due diligence runs on a deal timetable, not a technical one. Scope is agreed against the time available, and where the window does not permit full assessment, itmad states what has been covered and what has not, rather than presenting partial work as complete. Access constraints during a confidential process are normal and are planned around.

Independence in technical due diligence

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

Related services

Technical due diligence is commonly 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?

Technical due diligence is an independent assessment that puts numbers against asset condition, remaining life, deferred maintenance and compliance liabilities before a transaction closes rather than after. The price is agreed on what an asset is worth today, while the cost of ownership is decided by what has been deferred, what is approaching end of life, and what is not compliant.

What does a technical due diligence assessment cover?

A technical due diligence assessment covers asset condition, remaining service life, deferred maintenance, regulatory compliance, design and documentation review, the capital expenditure profile, technical liabilities, and operating cost drivers. Technical liabilities include contamination, structural defect, obsolescence, and systems that cannot be maintained because parts or support no longer exist.

What does the capital expenditure profile show?

The capital expenditure profile shows identified expenditure phased over one, three, five and ten years, so the buyer sees the shape of the commitment rather than a single figure. The same amount costs a transaction differently when the amount falls next year than when the amount 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 explicitly, including anything that could not be inspected and what that means for confidence in the figures.

When is technical due diligence commissioned?

Technical due diligence is commissioned for an acquisition ahead of price agreement or during an exclusivity period, for a disposal where a seller wants to know what a buyer will find, and for a refinancing where a lender requires independent assessment of the security. Technical due diligence is also commissioned 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 that itmad assesses, and does not carry out the remedial work that itmad identifies. The findings are reported as found to whichever party instructed itmad.