Forestry due diligence

CMO is Africa's largest consulting, training and auditing company. We also offer forest valuations. Please contact me if you have a need for this service and I will put you in touch with our forest valuations expert who has over 25 years of experience in this field:

1.                 Confirm stated condition of land and forest

·        During the visit to detail land use and its suitability to forestry in terms of expected yields.

·        Description of forest with reference to the state of the trees.

·        Community land issues with forests.

2.       Silviculture state

·        Establishment comment on stocking density and mortality.

·        Infestation of weeds, pests and diseases.

·        Completion of activities such as brashing and thinning.

·        Identification of backlogs in plantation activities and cost to catch up.

3.      Fire Protection and other security elements

·        Road networks the extent, condition and adequacy.

·        Fire breaks, equipment and fire prevention plan.

4.       Other assets

 ·        Noted in terms of condition and quantity.

·        Functionality and whether required.

5.                 Yields

·        The impact climate, soil, planting method, species and espacement has on yield.

·        Enumeration completed and accuracy.

·        Expected yields

·        Volume flow iro this and the next rotation

6.      Valuation inputs

·        Prices, activity costs, yields and discount rate.

7.        Valuation methods and Cash flow

·        Normality of forest

·        Valuation Methods: Faustmann formula,  Discount Cash Flow (DCF) and Replacement value model;

·        Sensitivity analysis on key valuation inputs