What is a Gate System in Due Diligence

//What is a Gate System in Due Diligence

What is a Gate System in Due Diligence

Murow|CM provides Due Diligence services, also known as Feasibility, on a variety of projects for major Public & Private Residential Builders & Developers, Commercial & Industrial Builders & Developers, Equity & Debt Firms, Oil Companies, Land Owners, etc. We leverage our over four decades of experience & expertise to identify exposures and develop creative, efficient, and cost effective solutions to quickly provide the decision makers with the necessary information to make informed “Go/No Go decisions on the project being analyzed.

Through our experience, we have learned how to simplify the feasibility process, especially on the more complex projects. On these types of projects we use what we call a “Gate System” that breaks down the feasibility effort into manageable phases from a cost and timing perspective. This methodology analyzes complex real estate development projects from the initial underwriting through the course of entitlement and development. The key function of this system is to provide our client the ability to analyze prospective projects in an efficient and incremental manner allowing them to limit their capital outlay and diligently work through the time constraints of the feasibility period. If at Gate 1 (Initial Feasibility) the economics or other factors identify fatal flaws, the decision making can be quick and efficient. If the 1st Gate is passed, then the same process goes with the upcoming gates as we move through the discovery and vetting process.

As each “Gate” is completed we provide a “Risk Analysis” and “Recommendations” that provide decision-quality information to allow our Client’s to make informed decisions on the proper action to take on the project. The Risk elements may include: a.) Entitlement/Political Risk; b.) Environmental Risk; c.) Infrastructure Capacity Risk; d.) Horizontal Development Risk; e.) Market Risk. The “Recommendations” section provides succinct options for the next steps on the project for the Client’s decision-making process.

To learn more about our Due Diligence efforts, please contact Bob Garrison (Director of Consulting Services) at 949.398.8349 or by email at bgarrison@murowcm.com. We look forward to the opportunity to talk through our template Due Diligence Gate System.

Register here for our upcoming webinar on the “Gate System” on Wednesday, July 24th at 10AM PST.



By | 2019-07-26T13:46:11+00:00 June 26th, 2019|Advice|0 Comments

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