• Real estate due diligence

Real estate due diligence

Due diligence investigations as a detailed analysis of all pertinent aspects for a real estate transaction create transparency and show you the risks and more in the scope of a change of ownership. More than this, due diligence tests ensure transparency for the potentials of your planned real estate transactions.

Due diligence is carried out in line with your needs and can be broken down into different analysis areas, examples and excerpts of which are listed below:

  • Financial due diligence

    • Analysis of property valuations (asset and share deal)

    • Risk assessment and analysis (qualitative and quantitative)

  • Legal due diligence

    • Inventory of land registry data for the property

    • Analysis of the leases and the rental collateral

    • Verification of insurance law status

    • Analysis of other contracts, rights and obligations

    • Inventory of public duties without tax

  • Tax due diligence

    • Inventory of tax status (typically for the last three years)

    • Identification of existing tax risks

    • Share deal: Determination of external tax audits, construction work withholding tax, sales tax risks, obtained tax benefits, reconciliation with tax authorities, etc.

  • Technical and environmental due diligence

    • Analysis of the technical condition (investments/maintenance)

    • Analysis of operations and quality management

    • Analysis of the quality of location

    • Verification of conformity with official regulations

    • Analysis of inherited waste (soil, water, buildings)

    • In-process and organic environmental protection, end-of-pipe environmental protection

    • Analysis of operational and liability risks

    • Compliance audits (regarding, e.g. environmental regulations)

Isolated viewpoints are no longer sufficient for today’s tasks. Our interdisciplinary teams of specialists from all the required BDO divisions analyse the economic, financial, legal, fiscal, technical and environmental conditions of the property/properties or the real estate company.

The composition of the advisory team is based on the due diligence priority topics. In addition to real estate specialists, teams consist of BDO’s internal professionals such as architects, civil engineers, geologists and chemists. In addition to this, auditors, lawyers, accountants and IT professionals are consulted as needed.

In particular, in real estate enterprise due diligence, experts from the divisions of advisory services and tax and commercial law are consulted for the fields of financial, legal and tax due diligence. In the form of BDO Technik- und Umweltconsulting GmbH, BDO also has engineering expertise to handle consultancy in technical and environmental real estate issues.

Our comprehensive range of consultancy services offers you the following benefits:

  • Access to real-estate-specific expertise in all departments of BDO

  • Documentation only needs to be provided once

  • Showing potentials and identifying risks

  • Facilitating decision-making processes thanks to the transparency achieved

  • Purchase or selling price based on opinions of independent experts (objectivity reduces vulnerability)