Article / Updated 03-26-2016
Real estate, facilities, and other fixed assets are important considerations when making an M&A deal. The following information is a critical part of the Buyer’s due diligence:
M&A due diligence: Real estate and facilities info
A business isn’t a business unless it has a place to operate from. Providing Buyer with the following details on the business locations and the nature of those locations is another key responsibility of Seller during due diligence:
Listing of all business locations
Listing of all owned or leased real estate, including locations
Copies of all real estate appraisals, leases, deeds, mortgages, title policies, surveys, zoning approvals, variances, or use permits
Lease terms, including date signed, termination dates and rights, renewal rights, rent amount, and unusual provisions (such as purchase option), as well as any defaults or breaches
Listing of current and pending construction in progress, including date commenced, expected completion date, and any additional financial commitment necessary to complete the project(s)
Who owns the facility, and is it part of the deal?