April 11, 2024
Due Diligence
From the Desk of Mark DeCocinis
Due Diligence evaluation of elevator equipment is vital in the purchase/acquisition of new buildings.
A Due Diligence evaluation will help you assess your vertical transportation equipment for useful life remaining, type of equipment and serviceability. This will allow the Owner to budget in advance for any major repairs, modernizations, or replacement of equipment.
This Service is typically provided when a building is being refinanced or sold. Banks and potential buyers need to know the status of the existing elevators and/or vertical transportation equipment so that they can establish a fair price. Buyers can negotiate a better purchase price or see what capital will be needed to be spent in the short term (one to three years), medium term, (three to five years), and long term (five to ten years).
VDA will evaluate the existing equipment and quickly provide you with a report that identifies the strengths and weaknesses of that building’s equipment. This report will contain an overview summary of the equipment, identification of concerns in the short, medium, long term, and many other useful details that will help you determine your overall risk.
This is also a useful service when purchasing a new property. VDA can use one of its Elevator Professionals to report on the current condition of the equipment in the building and determine if the purchaser will be exposed to any unexpected costs or issues with the equipment. In addition, this could be used when selling a property to avoid potential concerns with the buyer.
For more information, please click the links below to the company website and further information.