Operational due diligence

Operational due diligence

Most business owners do not conduct a proper operational due diligence when purchasing a rent roll.
And so, in many instances, they fail to understand the real risk and value of the rent roll under consideration. That’s because many business owners are unaware that there are two types of evaluations – financial and operational due diligences. In order to make a truly informed decision as to the viability of a rent roll under consideration, an ‘operational’ due diligence should be conducted prior to a ‘financial’ due diligence.

An operational due diligence identifies the ‘critical factors’ and accesses the risk factor of the property management rent roll under consideration, as well as the real value of the rent roll. Identifying these can determine whether the rent roll under consideration is a viable investment that enhances your current business and is compatible with your operational business plan.

This puts you in a position to determine whether or not to proceed with the next step- the financial due diligence- and, ultimately, the purchase of the rent roll.

Don’t pay too much or buy a rent roll that looks good on the surface but could potentially destabilize your business!

For a fee less than the asset value of one management, you can engage the services of an iiCC to conduct an operational due diligence and provide you with the information you need to make a diligent decision on the rent roll, or even go back with a more realistic offer.

"I found Jo-Anne very professional when she assisted us in the due diligence and purchase of a rent roll. She has great systems to analyse and identify any risks in a rent roll. Thanks Jo-Anne for your assistance and recommendations which allowed a smooth transition for our rent roll purchase."

Karl Rademeyer
Principal/Director
RE/MAX First Caloundra

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Whether you have a specific question or just want to learn more about ireviloution and the services we offer, get in touch with us today.



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