Technical due diligence (TDD)
Technical support and consulting for every transaction
Before you buy or sell a property, we will gladly take over all the steps for a successful technical due diligence so you can take all factors into account.
What we can specifically do for you
- Complete technical inventory assessment for individual properties and portfolios
- List of measures (CAPEX) including prioritisation and comprehensive cost estimate
- Negotiation support during the entire transaction process
- Post-closing consulting and controlling
- Fast-track process for the implementation of particularly time-critical projects
- Structured review of available property information for completeness and content
- Derivation of recommendations for action, especially for negotiation talks
What benefit you receive
- Objective and target-oriented technical evaluation
- Negotiation potential to optimise the purchase price
- Clearly defined action strategies for your property
- Quick and significant results
- Identification of risks in the buying and selling process as well as in the portfolio
- Sound preparation for negotiations
FAQ Technical Due Diligence
In many cases, a technical due diligence is carried out by the buyer as part of the transaction process. However, if the seller wants to obtain a comprehensive assessment of the opportunities and risks of his property early in the transaction process in order to be prepared for the upcoming negotiations with a potential buyer, it is advisable to prepare a so-called vendor due diligence. Based on the results, the seller can decide which identified measures should be implemented in the short term to optimise the purchase price or whether there are deficiencies in the documents required for a technical due diligence.
The necessary investment requirement is determined for all measures within the scope of the CAPEX evaluation above an individually agreed threshold value with the customer. This is usually between € 5,000 and € 10,000 net. Safety and fire protection aspects are considered independently of the threshold value due to the high risk. The investment requirement is calculated taking into account the condition of the building, the service life of individual components and any measures required by law. Usually, the investments are divided into immediate measures (year 1), medium-term measures (years 2-5) and long-term measures (years 6-10) in a list of measures.
It is also advisable to have a technical due diligence carried out for properties that are in planning, approval or construction phases (forward deal) in order to identify risks that already exist or may arise in further project progress up to completion at an early stage. On this basis, necessary measures can be derived to minimise these risks.
A TDD light usually only includes an inspection of the property as well as a review of the technical and fire protection-relevant documents. The result is a short report with a CAPEX list and a summary of the property. In the case of a full TDD, the individual components and technical systems are described in more detail in a full report, the building and licensing situation is checked and a plausibility check of the area is carried out. Depending on the client's wishes, the scope of the inspection can be agreed individually.
A TDD light can usually be produced within a few days, while the production of a full TDD report takes about 2-3 weeks. In a full TDD, the first results are shown after about a week in the form of a red flag report. The duration of the due diligence depends mainly on the accessibility of the object, the completeness of the existing object documents of the overall project organisation and the course of the Q&A process.
Let's talk about how we can support your project
Alana Raubacher MRICS