Services – Advisory & Feasibility
COMMERCIAL DUE DILLGENCE
What is future-tech’s commercial due diligence service?
Future-tech’s Commercial Due Diligence Service provides an in-depth analysis of a data centre’s commercial capability based on multiple factors including location, size, design details, build quality, condition, market suitability, current or anticipated operating costs and potential commercial risk.
The service can be applied to both existing and proposed sites and will include a focus on the suitability for a particular client’s requirements as well as highlighting any issues, risks or opportunities. Beyond site evaluations specific strategic and tactical advice can be addressed based on a client’s requirements or expectations for an existing site or planned development.
Methodology
Our consultants will utilise decades of data centre specific experience to complete due diligence audits surveys using in house data centre consultants augmented by external resources if required. Commentary will be given on the suitability of a site against a client’s stated objectives and requirements based on multiple factors.
Our consulting team have the ability to deliver world class data centre specific commercial due diligence based on each consultant’s experience of providing both strategic and tactical advice to data centre clients over a period of many years.
Information Sources (New and Existing Sites)
- Detailed discussions with client management or investment team
- Detailed information packages on existing data centre(s) or proposed site(s) including detailed design plans and technical specifications
- Market analysis
- Operating model
- Sample customer/supplier contracts
- Customer or intended customer interviews
Existing Business Review
- Review and assess product offering, customers, pricing and commercial KPIs for existing data centres (including, churn, renewal pricing etc.)
- Benchmark KPIs against international, national and local competitors and discuss attractiveness of the offering
- Review sample customer/supplier contracts and suggest improvements where applicable
- Interview existing and target customers to determine how the site is perceived by customers in terms of overall service offering, site capabilities and condition, service
- levels and pricing
- Determine customers’ key selection criteria and measure these against site capability Provide detailed report based on analysis.
- Provide support in customer contract preparation as required
Future Business Plan Review
- Describe local demand/supply and assess the commercial assumptions (to include product offering, ramp-up times, pricing, build costs, operating costs, etc.) for the project(s)
- Benchmark commercial assumptions against international, national and local competitors and discuss the attractiveness of the proposed offering
- Benchmark assumptions against anticipated industry developments
- Conduct interviews with identified potential customers to understand their rationale, expectations, decision criteria and highlight potential risks
- Review draft customer/supplier contracts for new data centre(s) and benchmark against market standards
The final output will be a detailed report assessing a site’s commercial potential based on location, design, and current market noting any commercial, functional or operational issues that would be a cause for concern.
Benefits
Oversight, opinion and technical evaluation by a team of data centre consultants capable of utilising decades of data centre specific experience based in both delivery and receipt of data centre services, an understanding of commercial drivers and market conditions as well as involvement in ongoing data centre standards development.
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