Financial due diligence
Financial due diligence
Financial insight and transparency to avoid misinformed acquisitions
To mitigate risk, no acquisition of a commercial property should be closed without proper review of the asset’s financials.
Identify red flags and gather critical information through the financial due diligence process, so you are better prepared to make the go, no-go or which way to go decision.
With experience serving large and small clients we provide:
Strengthen your bid and limit post transaction surprises with the proper financial due diligence
Our financial due diligence services include:
- Independent appraisals, to best understand the current value of the property, at the time of sale – and to support the transaction price.
- A review of property tax, including:
- Property tax forecasting /tax projections
- Assessment of tax liability and review of tax classification
- Property tax considerations for underwriting
- Lease and tax allocation (tenant vs. landlord)
- Ensuring future assessment appeal rights are not compromised by the vendors’ inadequate or non-compliance with assessment authority information requests
- Review of outstanding tax appeals and analysis of supplementary assessments
- Review and summary of all leases and tenant correspondence; highlighting all notable options to expand, terminate, etc.
- Reconciliation of leases, rent letters, estoppels, and / or architectural certificates, and bank statements to the rent roll.
- Verification of recovery revenue, with particular attention to things like CAM (common area maintenance) charges, and tax charges / assessments.
- Review of other financials including historical and audited statements, YTD performance, current budget, variance analysis with a cashflow forecast, accounts receivable / payable, and miscellaneous revenue (license agreements, etc.).
- In-person tenant interviews to understand their experience, concerns and potential opportunities for improvement; and, surveying the competing office complexes to understand market rents.
- Benchmarking to support your valuation assumptions in underwriting.
Physical due diligence
When buying a commercial asset, it’s important to have the property’s condition physically inspected and assessed from a financial risk perspective.
Litigation support & appraisals
Take the complexity out of the appraisal process. Our team members’ collected experience and specialized education allow us to be uniquely qualified to assist you in the solution of your complex appraisal problems.
Contact a qualified expert
Our multi-disciplinary team of professionals brings a wealth of industry experience and unparalleled data-driven insights, providing the clarity you need to make informed decisions.