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 individual assets, real estate portfolios, 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 property and how the workout procedure should be structured.
• Accounting and tax assessment: every deal involves an in-depth assessment of the indebted company’s balance sheet and any eventual collateral obligations it might have. This is followed by a close look at the diverse fiscal impacts any acquisition and workout process would have.
• Real estate valuation: the Advisory Division (Real Estate Section) assesses the legal implications of the underlying asset, looking at both the urban and administrative regulations involved – existing urban planning constraints, whether bound by any municipal agreement, specified use obligation, existing permits, etc.- as well as the real estate specifics: estimated square meters, state of completion, and worksite timeframe.

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 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.

We coordinate all activities preparatory to the creation of securitization vehicles by making use of primary reference players (Banks and Funds) in the Italian market both domestically and internationally.

Our Project Management operations include all the organizational and monitoring activities envisaged for each specific plan.
These include:

• coordinating the different players involved;
• organizing and executing the detailed Action Plan specific to each project;
• setting up and implementing an efficient assessment and control system to ensure compliance with the project’s quality, timeframe, resource allocation and cost parameters;
• management of all contracts and agreements connected with the project, in tandem with our legal office;
• relations with credit institutions.

Our Project Management office is also responsible for all sales activities, in particular: agent selection, marketing and promotion, and monitoring of the disposal plan.

Our Construction and Engineering team is responsible for coordinating all technical and construction activities and is the owner of all worksite operations. The team follows up all project stages such as building permits, urban planning regulations, planning, and worksite management. When necessary, members of our team are certified to carry out specific roles required by Italian law, e.g. Worksite Director and Health and Safety Rep.

We take care of the entire process of the sale of a property up to the closing of the transaction using, if deemed strategic, local agencies. In addition, we follow all the promotional activities of an asset: each communication strategy is tailored to the individual transaction and is consistent in terms of cost and timing with what is envisaged in the Business Plan and the progress of the construction site.

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