When taking on an asset or considering a business deal or contract you need to be sure that you’re giving yourself every opportunity to succeed. You will want to be sure that every stone has been turned and you’ve checked the detail – there’s an old saying about the “devil being in the detail”.
That’s why due diligence needs to be undertaken thoroughly when considering whether to take on an asset. Due diligence is about investigating and asking questions and finding out facts that can either make or break a deal, it’s not taking things on face value.
- How do we know the asset is an asset and not a liability?
- How do we get to the bottom of running costs of a building?
- Is there deficiencies in the building or for example is the roof leaking?
- Is the income associated with the building likely to decrease or increase?
- Is there a big railway coming through nearby for example!
Asset transfers are becoming increasingly interesting to both community organisations and local authorities who need to reduce their costs which are often associated with buildings and other assets such as land. The asset transfer process is complex for both community organisations and authorities and there is a need to consider due diligence before any transfer is undertaken, after all you wouldn’t buy a house without undertaking the searches.
We can help by providing you with expertise and knowledge from staff and associates who have “been there and done that”. We have unique experience on both sides of the coin, having helped organisations take on assets (including finding appropriate finance) and undertaking work on behalf of councils to ensure any transfer would have the best chance of success by reviewing and improving enterprise business plans and ensuring the asset would be protected for community benefit.
If you’re considering an asset transfer then get in touch.