Fatal Flaw Analysis
When it is the desire of our clients to have an evaluation completed to determine the viability of a proposition or opportunity which requires an effort less extensive than that put forth in a typical due diligence investigation, it may be appropriate to complete a fatal flaw analysis. At Skelly and Loy, we define a “fatal flaw” as an event or condition that could cause an unanticipated problem or prevent the opportunity from achieving its objectives and goals. A fatal flaw can be relatively transparent and associated with assumptions made or can be intangible and difficult to identify. Similar to due diligence investigations, a fatal flaw analysis can apply to any aspect of a project. We have completed fatal flaw analyses for a variety of clients including mining companies, electric utilities, financial institutions, investors, and related companies. As part of a fatal flaw analysis, it is customary to determine the impact should an event occur that was not anticipated. Consideration can be given to factors such as permits and environmental issues, geologic conditions, reserves (quantity and quality), costs, equipment applications, and markets.