Charleston Office

706 Orleans Rd.
Charleston, SC 29407
843.769.4449

Greenville Office

84 Villa Rd. Suite 300
Greenville, SC 29615
864.288.6353

Management

Financial Management

Virtually every aspect of Kestrel’s services involves economic analysis and performance management. Kestrel develops opinions of probable cost for conceptual alternatives as well as for detailed engineering designs. As a matter of course, we develop estimates for the options we describe. Sensitivity analyses (if → then) are standard in the way we approach financial management. Discounted cash flow analysis, including net present value, payback period, and uniform annual equivalent costs are an ordinary part of our economic analysis.

When working in acquisition and divestitures, we often prepare one set of estimates for negotiating purposes and another set that describes the most likely and reasonable approach. In one acquisition, Kestrel was able to support a 60 million dollar reduction from the purchase price for environmental liabilities, including a 21 million dollar cost to repair and buttress a 100ft tall dam for a large impoundment of secondary materials from a very large minerals processing operation. Less than two months after the acquisition was complete, the dam failed completely in a hurricane and released a very large quantity of the secondary materials, similar to the release of the coal fired power plant fly ash at the Tennessee Valley Authority facility. The client was able to clean up the release and repair and buttress the dam for substantially less than the 21 million dollars that came off the purchase price of the facility as a result of Kestrel’s technical work. Kestrel also developed an alternative plan for remediation of various deficiencies in the facility’s environmental management equipment; the net savings (profit) produced was more than 20 million dollars.

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