Using Yardi to Analyze M&A Deals

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Data are major components of mergers and acquisitions (M&A) deals. Data analytics help firms do deep dives into information at every phase of a transaction. In the due diligence phase, a strong analytics platform can reveal critically important details that otherwise might go undetected, helping firms make better decisions. After closing, analytics can guide the integration of new assets into an existing platform. 

Properly configured, Yardi is a powerful tool for analyzing complex data. Within the platform, users can handle everything from accounting to operations and more. But how can an organization take advantage of it for M&A deals?

Tap into the Power of ABF and Cash Flow Valuations

Yardi’s optional Advanced Budgeting and Forecasting (ABF) module offers users a flexible sandbox for analysis and experimentation.  ABF allows users to play with a virtual copy of a business’s database. By incorporating information about an acquisition target into the ABF module’s virtual environment, a firm can run different scenarios to view various outcomes. Here are a few examples:

  •   Explore the company-wide financial impact of a particular property being acquired or sold.
  •   Study contingencies such as the loss of an anchor tenant, improving the accuracy of risk assessment.
  •   Understand in detail the projected maintenance costs of a deal.

Businesses can use the ABF module to adjust factors across their entire portfolios or within a single set of properties. They can even see the differences between what was planned and what has been accomplished, immediately identifying potential issues.  The product easily facilitates the production of real-time valuations of cash flows and Internal Rates of Return (IRR) at a property or portfolio level.

Model Results for Investors

At the higher end of the real estate marketplace, investors expect a lot from their property management firms. The Yardi system can be used for this purpose, providing advanced models for investors at every level. At 33Floors, we work with our clients to implement their Yardi platform to incorporate the mechanisms of all their investor agreements. This ensures that each deal’s potential consequences can be projected with clarity and accuracy for each investor.

Reporting is a key component for today’s investor relationships. By creating custom reporting scripts and presentation formats, 33Floors helps clients deliver the information their investors want in a style that’s tailored to their specific needs.

Clean Due Diligence Data for Buyers

For businesses on the sell side, providing accurate records to potential buyers is critical both to manage risk and to support pricing efforts. 33Floors helps clients examine their data integrity and produce high quality, accurate reports to support the buyer’s due diligence efforts.

We often recommend our Yardi Operational Review (or YOR for short) service to clients who can benefit from a deep dive into the integrity and completeness of their Yardi database.  A YOR includes running custom reports to analyze existing data and system usage, rapidly identifying missing, incomplete, or inaccurate information. 

After these reports are run, we present recommendations to improve the implementation to better match business requirements. In the context of selling a property or an entire business, a YOR can be an important source of comfort that the information underlying the deal is free of errors. 

33Floors is your Yardi partner

At 33Floors, we work closely with clients to build an implementation that completely supports their needs. As part of our services, we’ll develop detailed process flows and customized reporting modules that match user requirements. 

Is your business getting the most from Yardi in its M&A deals? Give 33Floors a call today to start a conversation about how the platform can supercharge your decision making.

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