Companies and investors that are about to make a major financial investment in a consumer products company are presented with a unique set of challenges. Issues such as unsafe products, inefficient production techniques, unsanitary factory conditions, and inadequate sourcing arrangements have the potential to substantially reduce the chances of a successful investment.
STR works with private equity firms, commercial lenders, institutional investors, and insurance companies to assist them in identifying, understanding, and managing their risk. Our due diligence program identifies risk points and the technical strengths and weaknesses of potential investments so that our clients can make sound investment decisions and mitigate their financial risk.
Through our global network, STR’s experts can provide a comprehensive technical analysis of a "target" company’s products and operations. Our risk investment services for investors include:
Product Evaluations
A product evaluation can advise investors whether or not a product meets the quality, safety, and performance expectations of consumers, as well as satisfying stringent regulatory requirements and industry standards across many countries. It also provides investors with reliable, validated information that can help them gauge the product’s market potential. In the regulatory arena, product evaluations can uncover compliance issues that may prevent a product from being sold in another location. Once identified, STR can provide accurate information to ensure the product is saleable in another market or country.
Manufacturing Audits
With potential profits at stake, investors need to know that a manufacturer is capable of manufacturing the intended volume of products in a safe, reliable and consistent manner, and production schedules can be met. Independent audits are an effective tool for gathering this critical information. STR typically audits in excess of 10,000 facilities each year to determine the adequacy of their manufacturing capabilities and quality assurance systems, to ensure regulatory compliance, to evaluate store and warehouse sanitation conditions, and to review social and environmental performance.
Our detailed independent audits provide companies with essential information allowing them to make informed decisions regarding the adequacy of manufacturing capabilities, quality assurance systems; regulatory compliance, sanitation conditions, along with social compliance and environmental performance.
Supply Chain Assessments
STR performs detailed risk assessments of supply chain operations to identify business interruption risks that could have a negative impact on a company’s bottom line. Our analysis includes product inspections, an evaluation of the political and regulatory environment where a company’s manufacturing plants and inventories are located, a review of the company’s sourcing and routing arrangements, an assessment of the target company’s manufacturing and transportation contingency plans, and compliance with the U.S. Customs Trade Partnership Against Terrorism.
If problems are identified, STR can help investors mitigate the risks through a corrective plan of action. A wide range of services are available to help clients improve their products, manufacturing processes, business operations, and supply chain channels.
To get started with STR’s technical due diligence or for more details on our risk management services, contact Karolyn Helda at karolyn.helda@strus.com or at 716-937-4679.
Click here to download STR’s brochure on risk management and technical due diligence services.
