Due diligence consists of the appraisal, verification and analysis of the history and technical issues underpinning a given NPE in order to get a snapshot of the real status of the underlying real estate as the first step towards maximum value generation.
Due diligence involves:

• Valuation: we are able to value NPLs and UTPs according to the best valuation methods: income approach, DCF, and comparative assessments.
• Legal analysis: our legal office supports the Advisory Division during due diligence into all legal aspects to get a clear picture of the current status of the company and how the workout procedure should be structured.
• Corporate Analysis: supported by leading consulting firms and Big Four for each deal, we carry out the analysis of the debtor company’s balance sheet and any guarantees issued. The different tax impacts are then also analyzed, depending on the manner in which the credit acquisition transaction is constructed and the subsequent valuation.

The Business Plan contains the best overall workout strategy that will generate the highest value return for the particular case in hand.
Drawn up on the basis of the results of the due diligence, the Business Plan is made up of 3 key components:

• Economic and financial aspects: an Income Statement, Balance Sheet and Cash Flow drawn up for the full duration of the project.
• Sensitivity analysis: the Business Plan is stressed against variations of key items, i.e. variation of sale price/sqm.
• Timeframe of key activities to ensure overall project governance and value generation process.

We boast in-depth knowledge of insolvency procedures arising from insolvency situations of debtors that provide for the management and recovery of impaired debts through legal and legal tools provided by the legal system.

Negotiated settlement can play a crucial role in optimizing debt recovery through consensual and faster solutions than court proceedings. It involves the appointment of an expert, assessment of the debtor’s situation, drafting a recovery plan (e.g., debt restructuring, property sales), and negotiations.

We prepare articulate information sets such as performance reporting on invested operations to be sent later to investors and co-investors.

We flank companies in difficulty through our C.R.O. (Chief Restructuring Officer), a manager with experience in both ordinary company management and the various extraordinary restructuring options envisaged under Italian law: according to Art 67, or Art 182bis, i.e. restructuring an indebted company or a business already involved in bankruptcy procedures. The C.R.O. is accountable for all operational and strategic decisions impacting the cash flow established by the Business Plan framework.

With the help of leading consultants experienced in the specific industry segments, we prepare new business strategies related to the companies whose debt we have taken over to perform the position.

As part of the strategic repositioning of invested companies, we consider their international development as an important growth lever suitable for the reperforming of debt positions.

We consider listing on major stock markets as a potential exit instrument of the final disinvestment.

We prepare articulate information sets such as performance reporting on invested operations to be sent later to investors and co-investors.