AAETAS (EN)

Operational due diligence evaluation

If a change of operator or owner is on the agenda at facilities or real estate properties in the healthcare sector, a comprehensive analysis of current status and potential is indispensable for purchasers and vendors alike.

In detail, that process encompasses the following tools:

Location analyses (macro and micro-analysis) with regard to:

• location
• determination of demographic structure and growth of demand
• evaluation of demand
• price-performance comparison with potential competitors
• appraisal of real estate property
• position of social welfare bodies
• framework conditions arising from future legislation
• analysis of earning power of the facility (determination of prospective profit-and-loss)

Planning analysis with regard to:

• target group definition
• development of concept with reference to services, size of facility, location etc.
• spatial concept
• plausibility check with respect to
• planning
• construction costs
• operational costing
• marketing concept
• positioning of the facility in the respective market

Operational property and facility management

In order to ensure your real estate property retains or even increases its value in the long term it is necessary to constantly adapt to the requirements of the market and the demands of stakeholders. AAETAS Consult provides the following services in this area:

• preparation of maintenance budgets 
• supervision of contractually agreed upon maintenance measures
• safeguarding of sustainable value
• determination of indexation
• reporting
• settlement of accounts

Annual quality controls

Regular quality controls are an indispensable service for investment funds that have purchased facilities in the healthcare sector in order to sustainably safeguard earning power.

AAETAS Consult takes on the annual evaluation of earning power with respect to:

• profitability
• quality
• laws
• ordinances
• utilisation of the real estate properties
• maintenance status

Specialist support in conjunction with procurement of equity capital

AAETAS Consult supports investment funds and operators seeking additional investors in conjunction with procurement of additional equity capital.

That includes:

• organisation and accompanying support on presentation tours for interested parties
• content and graphic design of prospectuses
• concept development and preparation of presentations for investors

Optimisation of facility operation

Operators of facilities in a wide variety of segments of the healthcare sector that want to retain their profitability in the long term or escape from a precarious economic position require analyses and concepts for optimising operational workflows and increasing cost efficiency.

Our range of services encompasses:

• analysis of operation with regard to service quality as well as the real estate property
• planning of measures aimed at enhancing efficiency, quality and profitability
• preparation of marketing and personnel concepts
• liquidity planning
• taking on external management and/or executive management of operating companies

Strategy and management consulting

Facilities in the healthcare sector can only operate successfully if they adapt to changing requirements in the market in a timely manner. Thorough evaluation and consulting in the preliminary phase are required for adaptation processes of that nature.

Our measures in this area:

• analysis of operating concept
• analysis of potential for the respective facility
• control and implementation of findings

Analysis of current and prospective use of real estate properties

For operators and potential purchasers of a facility in the healthcare sector, the possibility of an alternative use for the real estate property is an essential aspect with regard to value performance. AAETAS Consult identifies what options there are in that regard. That also includes preparing a concept to enhance the possibility of an alternative use.

The following tools are used in such cases:

• initial appraisal with respect to space utilisation
• evaluation of existing contracts
• analysis of potential building conversions
• identification of potential interested parties (operators and investors)

Constructive resolution of conflicts

Within the scope of this voluntary structured process for conflict resolution, AAETAS Consult assists the parties involved in reaching a joint agreement.
Examples of possible deployment areas are conflicts:

• between tenants and landlords
• with authorities
• between contract partners in the business sector
• in connection with construction and renovation measures

Risk management

Systematic identification and assessment of risks as well as purposeful control of reactions to identified risks constitute an integral aspect of well-founded decisions made by operators and potential investors. AAETAS Consult also supports its clients in this area. The following options are available to you:

• in-depth examinations of factors pertaining to the real estate property and operation
• regular operator analyses with regard to quality and profitability
• portfolio analyses with a focus on options for alternative use, future risks and recovery options
• search for new operators

Consulting and accompanying support for mergers & acquisitions

A number of legal and structural aspects must be taken into consideration when the ownership structure of companies and real estate in the healthcare sector changes. In conjunction with this process, AAETAS Consult offers purchasers and vendors objective and constructive accompanying support – from the initial analysis to conclusion of the transaction. That includes the following services:

• consulting in the case of purchase and sale of companies
• preparation and accompanying support for mergers and joint ventures
• support in the case of privatisation, succession arrangements, management buy-outs and management buy-ins
• statement of opinion on financial appropriateness of transactions

Secure data availability via internet

AAETAS Consult provides virtual data rooms in which confidential documents can be exchanged and inspected securely in the course of corporate transactions via internet. The advantages of such a transaction room are:

• simplification of all workflows from planning to conclusion of contract
• secure availability of confidential corporate documents for all authorised process participants, irrespective of time and current location
• acceleration of all transaction processes
• cost reduction with respect to expenditures and transaction processes

Analysis of intrinsic value and capitalised value of anticipated yield for facilities operating in the healthcare sector

As far as valuation criteria are concerned, facilities in the healthcare sector differ substantially from classic commercial real estate properties because - as management real estate properties - they harbour very specific risks.

To determine the current market value of such operating facilities, AAETAS Consult uses the following valuation models as a basis, among others:

• calculation of gross cash flow
• prospective calculation of capitalised value of anticipated yield in the case of real estate properties for seniors, medical service centres and rehabilitation facilities
• valuation of real estate properties in the health care sector