10 Critical Due Diligence Points When Acquiring A Port Container Terminal Facility

A long overlooked sector, container terminal facilities have been garnering strong media attention both in the U.S. and internationally. Despite this cloud of politics hovering over port deals, container terminal facilities have been garnering strong interest from financial buyers, including investment banks and private equity firms, who have chosen to instead focus on the fact that many container terminal facility operators are profitable, highly cash-generative and asset-rich targets.

Container terminal facility operators run seaport facilities which are typically leased from local governments. Given the inherent security concerns that many governments have in securing their ports, when considering such a complex and politically sensitive acquisition, the importance of due diligence is magnified in determining the feasibility of making such an acquisition and properly valuing the asset.