ACQUISITION, allocation, AND DUE DILIGENCE REVIEWS

Due diligence is perhaps the most immediate indicator as to the success of a business or investment decision. HDS provides due diligence services that support the entire process, focusing on all critical elements that determine if a property will meet your strategic investment goals whether for its initial purchase or in a review of merger & acquisition criteria. Our firm utilizes only evaluators who are seasoned, veteran operators who themselves have a long history of identifying opportunities and deficiencies.

Our preliminary underwriting process begins with a thorough market and asset analysis including recommendations for improvement, an assessment of the asset and area’s underlying strength, and forecasted capital needs with financial projections and return analysis. Our due diligence division works hand in hand with our valuation and appraisal specialists to determine the financial health of your targeted asset. We identify trends, the depth of the competitive landscape, and all potential risks at play. We perform a comprehensive operational review and a transaction advisory. These reviews will enable you to make sound and informed decisions based on a full data set, minimize your risk of exposure to operational inefficiencies, financial instability, and legal liabilities, and potentially add to the overall value of the transaction.

HDS will prepare a prioritized list of target markets based on the criteria you set, such as brand alignment, growth potential, and market entry barriers. This survey will allow you to strategically allocate your resources and focus on the areas that have the highest ROI potential. We facilitate integration of a new property or product into your brand’s existing portfolio and align the property with your brand’s core identity – while introducing innovative concepts to boost market appeal. We help you identify trends well in advance of their arrival into your local marketplace, allowing you to position yourself to handily beat your competitors to profitable opportunities.

A review of financial statements and historical financial data allows us to assess profitability, solvency, and cash flow; we use pro forma analysis to evaluate the business’ long-term financial health, and evaluate debt, equity, and the impact of tax implications. After studying the company’s leverage and ownership structure we interview senior management and the quality of experience, skills, and performance ratings of all staff.  We physically assess the property, check maintenance records, and predict future CapEx needs and conduct a thorough audit of all relevant contracts such as management agreements, vendor agreements, leases, and intellectual property ownership. Lastly, we verify legal ownership of the property, ensure that all necessary licenses, and permits are in place, and uncover any existing or potential legal disputes that could affect the investment.