Due Diligence List

Company Information

  • Bios for key management team
  • Organizational structure and ownership charts
  • Description of entity ownership, ownership record book, and equity holder list
  • List of medical staff by specialty (age, board certification)
  • Description of physician recruitment efforts and plans
  • List/description of key contracts (physicians, managed care, suppliers, software vendors, service agreements, facilities, etc.)
  • Insurance certificate and loss run reports for the Operator/Tenant
  • Description of current loans and material covenants
  • Description of any pending, threatened, or past litigations

Certification, Compliance, and Regulator

  • Accreditation certificates (JCAHO, AAAHC, etc.) and any accreditation survey reports and the responses to any noted deficiencies or to conditional accreditation
  • Any governmental approvals, permits, certificates, registrations, licenses and the like required in order for the facility to conduct its business
  • Quality reports or summary quality data for the facility
  • Copies of Medicare Cost Report (if applicable)
  • Summary of any notices from governmental entities regarding any possible violations

Real Estate Physical Assessment Due Diligence

  • Environmental Phase I and physical assessment condition reports
  • Surveys, title insurance policy, and title commitments
  • Copies of any document affecting use of property (easements, HOAs, CCRCs, etc)
  • Building floor plans and space measurement reports
  • Any certificate or license needed to occupy and use the building
  • List of major capital expenditures in the past three years
  • Fixed asset roll-forward report and depreciation schedules

Financial Information

Operator/Tenant and Guarantor Financial Statements

  • Cash flow statement, income statement, and balance sheet
  • Year-end and year-to-date for past three years
  • Monthly for trailing twelve months (preferably in excel or text)
  • Current and next year detailed budget with supporting assumptions

Entity that owns real estate being sold (if applicable)

  • Cash flow statement, income statement, and balance sheet
  • Year-end and year-to-date for past three years

Information on real estate being sold

  • Copies of appraisals done to obtain bank financing
  • Copies of utility bills for past two years
  • Copies of any subleases (if applicable)
  • Property tax bills for the past two years (assessment notice & tax bills)
  • Summary/list of any building service contract (HVAC, elevators, etc)