In the context of investment, the time value of financial assets always plays a role. Which would you rather have: € 100 now or € 100 next year? In the world of finance, the answer will always be ‘Now’, because the € 100 you have now can be turned into € 110 next year by wise investment. Money you have to wait for is consequently worth less than money you can have straightaway. This fact has to be taken into account when performing financial analyses. All monetary flows throughout the economic life of an asset are therefore converted into present-day cash values as a basis for the assessment of a possible investment project. This procedure also sheds light on the risks that an investment entails.

KEMA can clarify all the financial implications of a proposed investment and help you decide whether it’s appropriate to go ahead.

KEMA offers a variety of policy advice services:

• Waste market analysis, modeling and forecasting
• strategic support in connection with the challenges of a dynamic market, climate change, new trading opportunities and internationalization
• strategic advice regarding the entire waste-to-energy conversion chain .

Success in this field depends on backing up strategy implementation with decisive leadership. KEMA provides the strategic consultancy services required by businesses faced by a dynamic waste market and increasingly strict environmental regulations. By innovative strategy development, we can help you perform to your potential. The strengths of our consultancy services include:

• clearly formulated objectives
• anticipation of future market developments
• strict project management. 

Does your performance match the best, or do you still have ground to make up? KEMA specializes in benchmarking businesses within the waste incineration market.

Competition between waste suppliers is an increasingly significant feature of the waste market. To remain successful in this competitive environment, waste processors are obliged to constantly review their costs with a view to minimizing them wherever possible. Comparing your own performance against other players – benchmarking – can be very helpful in this regard, highlighting the areas where improvements can be made.

What is a waste incineration plant worth? How do you decide whether the asking price is realistic? Anyone considering the purchase of a waste incineration plant needs to proceed carefully. Under such circumstances, a ‘due diligence’ assessment is absolutely vital. Due diligence involves precise determination of the technical and economic value of the assets for sale. And that involves a lot more than simply establishing whether a component is still in good condition. Activities of this kind are one of the features of the liberalized energy market.

If a company wants to sell off some or all of its assets, it will set up a ‘data room’, where as much information as possible is collected. Parties with a serious interest in buying the assets can then visit the data room to scrutinize the figures, but aren’t allowed to remove or copy anything. The point being that the information is highly confidential. The prospective purchaser can also ‘interview’ the vendor to find out more. KEMA has done due diligence work for various buyers.

The end product of the due diligence process is a report that describes all the assets in general terms and provides insight into the following:

• plant capacity
• operating costs and forecast investment requirements
• special maintenance that may be needed. 

KEMA draws no conclusions regarding a proposed sale, but provides objective data that a prospective purchaser enters into its own models in order to decide whether the deal makes sense and to quantify the financial and other risks involved.

For more information, please contact us.