The due diligence period is crucial for the Seller as it confirms the Buyer’s interest in continuing through the buying process. It is equally, if not more important, for the Buyer, who wants to be 100% confident in their investment decision.
For these reasons, we offer different comprehensive due diligence services to help make the right decisions.
One valuable tool for California commercial property owners that Rogerson Business Services would help you obtain is an Early Insight Report. This report includes three components that provide a high-level overview of your property’s value and condition and insights to guide your decision-making as you prepare to sell. The three components of the Early Insight Report are:
The CAVM Report is a fast and cost-effective option for commercial property valuation. While it is not a USPAP-compliant valuation, it is often used when a quick secondary opinion of value is needed. This report provides a wealth of data, including estimated property value, property information, past sales, loans, taxes, sales comps, rental prices, net operating incomes, rent rolls, cap rates, and more. It takes approximately two days to complete the report.
Another important step in preparing your property for sale is to obtain a Preliminary Title Report on the real estate where your business operates. This report ensures that the property’s legal entity is in order, allowing for a smooth change of ownership if you receive an acceptable offer from a Buyer. The turnaround time for this report is also approximately two days.
Utilizing these tools and reports ensures you are well-prepared to sell your commercial property and business in California quickly and efficiently.
Another vital step in preparing your property for sale is to obtain a Preliminary Title Report on the real estate where your business operates. This report ensures that the property’s legal entity is in order, allowing for a smooth change of ownership if you receive an acceptable offer from a Buyer. The turnaround time for this report is also approximately two days.
Utilizing these tools and reports ensures you are well-prepared to sell your commercial property and business in California quickly and efficiently.
Environmental Commercial Real Estate reports are essential before finalizing any commercial real estate transaction. Ignoring any environmental issue on or near the property can delay or even prevent the sale from closing. To ensure you’re making an informed decision, we offer a range of prescreen services that provide initial information to help you identify any environmental concerns. These include:
Each service takes approximately two days to complete, and the price of each report is customized, ranging from $50 to $450.
Property Resilience Reports are essential for commercial real estate sellers in California who must comprehensively understand a property’s underlying conditions. These reports provide valuable insights into the property’s risks, ranging from low to moderate to elevated risk ratings.
The Property Resilience Reports are available in three different options, including the following:
The Commercial Flood Certification report provides a detailed evaluation of a property’s flood risk, including an assessment of the property’s location, flood zones, and other factors that could increase the likelihood of flood damage. This report is vital for commercial property owners and sellers in flood-prone areas who must understand their property’s flood risk.
The Crime Prescreen report provides information on crime statistics and trends surrounding the property. It helps commercial property sellers understand the neighborhood’s safety and how crime rates may impact its value. This report is significant for retail and office properties that depend on foot traffic and customer safety.
The Property Condition Prescreen report provides a high-level assessment of a property’s condition, including its age, maintenance history, and potential issues that could affect its value. It helps commercial property sellers identify necessary repairs or improvements that could increase their value and marketability.
The turnaround time and price for the above reports vary, so please get in touch with us for details.
Our due diligence packages for the Real Estate are customized for your situation and include various options such as a property condition prescreen, commercial flood certification and crime prescreen.
These reports provide valuable insight into the underlying conditions of the property, giving you, the buyer, peace of mind and helping you avoid any surprises down the road.
Environmental issues can hinder the sale of a real estate property. If any of the Environmental Prescreen reports show a low or moderate score or issue, further research may be required to isolate the problem. The sale cannot close without addressing the issue as buyers may have concerns about their liability and lenders may not approve financing. Two important reports to obtain are Phase I and Phase II reports.
Phase I
The Phase I Environmental Site Assessment (ESA) report is an ASTM 1527-21 compliant report that meets the EPA’s standards. This report considers factors such as the presence of hazardous materials sold, supplied, or dispensed from the property, actual or suspected hazardous substances on the property or subsurface soil and/or groundwater due to current, past, or future activities, potential threats to the environment, or any cleanup standards that may be exceeded, and issues that may become the subject of enforcement action under Federal or state laws.
The turnaround time for a Phase I report is approximately 10 to 15 days, and the cost starts at $1995 and can go up from there depending on the complexity of the report.
Phase II
A Phase II report, also known as a Limited Subsurface Investigation (LSI), is only necessary when the results of a Phase I report show impacts on soil, groundwater, soil vapor, or indoor air at a property.
The cost and turnaround time for a Phase II report vary depending on the specifics of the property and the identified problem.
Are you wondering whether you need more detailed information to sell your California business and real estate? In most cases, the answer is yes. It’s important to understand why and what information is needed for your specific situation.
If you are a seller
If you are a seller, it’s crucial to gather comprehensive information about your business and real estate before putting it on the market. This can help ensure a successful sale by identifying any potential issues that could derail the process. For example, you will want to make sure the value of your property and business is accurately assessed and that any environmental concerns are addressed.
You don’t want to waste time and resources sharing confidential information with potential buyers only to find out later that the sale can’t proceed due to a problem with the property or business.
If you are a buyer
If you are a buyer, the same principles apply. You’ll want to conduct due diligence to ensure that you’re making a sound investment. This includes a thorough evaluation of the property and business, as well as any associated risks. You don’t want to invest time and money into a business that may not be as valuable or profitable as you thought due to hidden issues.
Other parties involved in the transaction, such as lenders, attorneys, and tax advisors, also need detailed information to provide their expert advice and services. By gathering all the necessary information in advance, you can ensure a smooth and successful transaction for all parties involved.
If you require a more comprehensive report to sell your California business and real estate, there are industry-standard and government-compliant reports available to safeguard your investment of time, money, and emotions. The following services and reports serve this purpose.
Rogerson Business Services is a business brokerage service based in California.
If you are ready to sell your California business, let us know your questions. Whether you are selling a medical practice, an HVAC business, a landscaping business, or any other business with gross revenue greater than $2 million, contact us today to learn about our successfully selling your business program.
We’re happy to talk with you about the process of selling your business. Give us a call or contact us when you are ready.
