Are you planning to purchase or finance industrial or commercial real estate? If yes, the best way to invest in commercial real estate is to perform an adequate due diligence investigation to make sure that you are familiar with all matter information to make wise investment result and determine your projected investment yield. Due diligence involves the act of thoroughly researching the property before making any decision.

However this process is time-consuming, the information you collect and summarise in due diligence reporting is imperative to make the right decision or creating a successful presentation. It can divide into sections named as company information (director names, formation, and ownership details), financial information (recent &past returns), legal history (past, present or pending judgments) and political risk induction (Country and region).

Let us discuss guidelines you need to follow for Due Diligence

Focus and Structure
The due diligence reports involve a purpose, key findings, an executive summary, suggestion section and one or more appendices. What makes a distinction a report from others is its principle, engrossment and level of information. Once you have conducted due diligence research facts, gather raw data and make personal observations to organise data in a way that permit you to evaluate the present situation, consider risks and uncover issues that offer leveraging scenario.

Format and Voice
Most individuals use a due diligence report as an information source to make a bid presentation or reference material during the contract. Therefore it is important to write for the target audience, focus on the objectives and most relevant information. You must use formal voice and present data using unbiased writing, intention and divide report information into separate subdivisions using letters or numbers.

Objectives and Administrative Outline
You need to make clear your reasons for performing due diligence in the objectives part. While the executive summary appears after report objectives. Therefore there is a need to structure the executive summary like the report in miniature and maintain its length relative to the portion of the report.

Key Findings and recommendations
Key findings should concentrate on the things that influence cost or enduring dealings of the business. You need to involve problems that support position and price and highlights performance and output issues. Further, there is a need to consider the cost ratios that bring out how much company is recently investing to work service in house and determine to identify risks to upgrade or replace outdated or old tools or equipment. However, you should include implementation costs, return on investment, high influence opportunities in the recommendation section and time frame for understanding funds or benefits for every prospect in due diligence reporting.

The bottom line

Taking steps to research for a due diligence report essentially places a business in a position of control, giving it the capability to agree and act from a place of knowledge. As a company owner, you require to not only look out for yourself but also the attention of individuals who have empowered with your business. A small attempt will go a long way in building sound business results.

Author's Bio: 

Our firm has two Accountants readily available to assist with all Accounting requirements from bookkeeping services to business tax returns and financial statement preparations or cash flow forecasting and budget preparation. Julie and Angelo have worked together for over 6 years having created the ultimate working partnership. Together they are able to provide a large array of accounting services without compromising on quality or personal touch.

Angelo Sangiorgi, specialises in