Our Real Estate Due Diligence Checklist is tailored specifically to transactions involving commercial real estate spaces. It includes all the questions you need to ask during the diligence stage.
The Real Estate Due Diligence Checklist provides a framework of initial due diligence requests. These are tailored specifically to transactions involving commercial real estate spaces.
The Real Estate Due Diligence Checklist provides a framework of initial due diligence requests. These are tailored specifically to transactions involving commercial real estate spaces.
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The Real Estate Due Diligence Checklist provides a framework of initial due diligence requests. These are tailored specifically to transactions involving commercial real estate spaces.
Likely if you are investing in commercial real estate you are interested in the physical property or location itself. Appraising and inspecting the property’s specs, features, and physical space is integral to closing a real estate deal. It helps you accurately assess value and discern if it will be a profitable investment. Data required includes roofing and HVAC information, environmental reports, and conducting or ordering in-depth inspections.
ITEMS IN PROPERTY INFORMATION DUE DILIGENCE INCLUDE:
Often times, commercial real estate is more than just a property; it’s a business. What this means is that aside from just purchasing the physical space, you could also acquire a bundle of employees, vendors, and other relationships. With that in mind, you need to confirm that everything is healthy and complaint on the business side of things. Data required includes employee metrics and information on the company’s relationships with employees and vendors.
ITEMS IN OPERATIONAL INFORMATION DUE DILIGENCE INCLUDE:
Zoning laws dictate the rules and regulations that govern building, remodelling, or utilizing your space commercially. However, these laws change constantly. Performing survey, title, and zoning due diligence will help you certify that everything is up to date and in working order. It will also help you learn more about any potential restrictions that are unique to your property. Data required includes zoning reports, surveys, covenants, restrictions, and easements.
ITEMS IN SURVEY, TITLE, AND ZONING DUE DILIGENCE INCLUDE:
If the target property is one that leases to tenants, you will want to do a thorough investigation of them and their leases. This will help you get to know your new customer, help ease the transition of new ownership, and give you a better scope of each parties’ responsibilities. Most importantly, you want to verify all of their leases, security deposits, etc. with a keen eye on financials. Some documents needed here are leases, amendments, and rent rolls.
ITEMS IN TENANCY DUE DILIGENCE INCLUDE:
The last thing you want to walk into when engaging in a new investment is walking into a sticky web of legal issues. Conducting this type of due diligence will ease the transfer of ownership and safeguard from potential issues. Elements needed here include litigations, insurance policies, and a team to help transfer any trademarks.
ITEMS IN LEGAL; CONTRACTS; AND INSURANCE DUE DILIGENCE INCLUDE:
As with any other investment, financials are key in valuing an investment, especially if the property owner is already claiming that it is profitable. Nonetheless, financial due diligence helps piece together the full picture of your investment and protect against unexpected problems down the line. Items here include income statements, expenditure history, and expenses.
ITEMS IN FINANCIAL INFORMATION DUE DILIGENCE INCLUDE:
Similar to legal, contracts, and insurance due diligence, governmental helps you verify that the property is compliant with jurisdictions and environmental regulations. Additionally, researching and obtaining all necessary licenses and permits promote a smooth transition and helps prevent other legal troubles. Items to investigate here include governmental and environmental regulations and any administrative proceedings.
ITEMS IN GOVERNMENTAL DUE DILIGENCE INCLUDE:
Due diligence is a critical aspect of any deal that begins very early in the process and can continue right up until closing. During due diligence, the potential buyer asks questions and requests documentation from the seller that helps the buyer understand the target company and its business. These requests are usually general to start and become more specific as the buyer develops a greater understanding of the target. Buyers use the information provided by the seller to evaluate the opportunities and risks associated with the potential transaction. It is important for sellers to stay organized throughout the process. Buyers often submit thorough, detailed request lists that require input from numerous members of the seller’s deal team.
As the name implies, a due diligence request list is a list of questions and requests for information and documentation that a buyer submits to a seller in order to learn about the target company, its business and its operations. The initial diligence request list tends to be broad and typically includes an extensive list of questions covering a wide range of subjects. This allows the buyer to gain a broad understanding of the target company and identify key issues that can be investigated and considered more closely. Because every deal is different, due diligence request lists have to be tailored to meet the needs of the buyer and address the unique circumstances of your transaction.
However, there is a variety of fundamental requests that are relevant in most deals. These are the types of requests that our templates are designed to address.
As the name implies, a due diligence request list is a list of questions and requests for information and documentation that a buyer submits to a seller in order to learn about the target company, its business and its operations. The initial diligence request list tends to be broad and typically includes an extensive list of questions covering a wide range of subjects. This allows the buyer to gain a broad understanding of the target company and identify key issues that can be investigated and considered more closely. Because every deal is different, due diligence request lists have to be tailored to meet the needs of the buyer and address the unique circumstances of your transaction.
However, there is a variety of fundamental requests that are relevant in most deals. These are the types of requests that our templates are designed to address.
Our templates are drafted to provide an inclusive and wide-ranging list of initial due diligence requests. However, the templates, as well as the information contained therein, are not legal advice. They are not complete, and they are not specific to your transaction. The templates are designed to elicit general information from the seller that will provide the buyer with a broad overview of the target and it’s business and operations. You should review any template before using it, and it may need to be modified to ensure that it is suitable and relevant to your circumstances. Information provided by the seller will likely trigger additional questions that focus on specific aspects of the target’s business and issues identified during the due diligence process.
No. Our Due Diligence Checklist is drafted to include typical requests that are relevant in most transactions. However, every deal and every target company is unique. Before utilizing any template, it is important that you review it with the help of your legal and other professional advisors to ensure that the requests are complete and tailored to the specific circumstances of your deal.
Every M&A process is different. Downloaders are urged to make these checklists their own by changing the providing information to better fit their needs.
This checklist was created by and for M&A professionals. It includes a comprehensive starting point for the integration process. However, every deal is different and may require additional requirements and tasks.
Our templates are drafted to provide an inclusive and wide-ranging list of initial due diligence requests. However, the templates, as well as the information contained therein, are not legal advice. They are not complete, and they are not specific to your transaction. The templates are designed to elicit general information from the seller that will provide the buyer with a broad overview of the target and it’s business and operations. You should review any template before using it, and it may need to be modified to ensure that it is suitable and relevant to your circumstances. Information provided by the seller will likely trigger additional questions that focus on specific aspects of the target’s business and issues identified during the due diligence process.
No. Our Due Diligence Checklist is drafted to include typical requests that are relevant in most transactions. However, every deal and every target company is unique. Before utilizing any template, it is important that you review it with the help of your legal and other professional advisors to ensure that the requests are complete and tailored to the specific circumstances of your deal.