BioAudit – Genetic and biological due diligence

Until recently, due diligence for aquaculture mergers and acquisitions has focused on the financial and legal aspects of the transaction. However this fails to recognise two of the most critical parts of a company: an evaluation of the genetic capital of their broodstock, and the biological aspects of their performance.

Both of these can have a major impact on the future value of a business and its sustainability, but both also require highly specialist knowledge, coupled with commercial understanding of aquaculture operations. Our unique blend of specialist expertise, a custom built genetics laboratory, industry experience and independence means that we are perfectly placed to offer a wide range of specialist consultancy and reporting services. Examples of our recent work include:

  • Independent and confidential genetic audits and advisory services
  • Biological due diligence assessments for mergers and acquisitions.

Bespoke due diligence audits

As our industry grows and evolves, investors and prospective owners are increasingly looking for reassurances about the sustainability of the operations, confidence in high animal welfare standards and for a sense check on feasibility of production and business plan targets.

Our bioaudits can provide a wealth of valuable information to help get a clear perspective of a potential merger, aquisition or investment.

Each due diligence assessment is bespoke for each client but examples of areas some areas of focus include:

  • Genetic assessment of broodstock samples to determine whether they can provide a secure, profitable breeding programme that is free of irreversible bottlenecks and the potential performance loss associated with inbreeding depression.
  • In-depth assessment of hatchery and grow-out operations
  • Evaluation of conformity to international best practice, including certifications.
  • An indication of any potential biological risks to the delivery of the business plan and any implications for buy-side valuations.
  • An assessment of management skills and staff development programmes.
  • Recommendations on the scope for increasing production and profitability in the future, including areas for potential CAPEX investment.

Typically our audit includes an on-site visit by a senior member of Xelect, video conference interviews and broodstock genetic analysis. A detailed final report is provided and presented by our expert team.