In an ever-changing real estate market, Citrin Cooperman provides comprehensive professional services to help real estate owners and investors navigate challenges and opportunities at each stage of the deal cycle. The firm’s significant Real Estate Industry Practice is comprised of professionals in each service line and real estate industry sector. “Especially in a market where there are more risks, it is important to have a trusted advisor that brings experience and demonstrated knowledge to the table along with the depth and breadth of services that go beyond real estate,” says Mark M. Mindick, partner and practice leader of Citrin Cooperman’s Real Estate Industry Practice.
Each real estate deal has a lifecycle that goes well beyond signing contracts and transferring funds at closing. Citrin Cooperman has the experience to support their clients in every stage of a deal and identifies five key stages in the “Journey to a Successful Deal.”
- Structure considerations
- Identifying opportunities and capital raise
- Managing deal flow and financial analysis
- Maximizing profits and minimizing tax impacts
- Exit strategy
“Every stage of that journey is important, but if you look at what’s going on in today’s market, it’s all about workouts,” says Mindick. “How do you deal with your current portfolio? How do you keep your real estate? How do you negotiate with lenders? How do you bring new equity partners into your deals that are efficient? How do you stay away from the sharks that are out there? All of these are important issues facing owners and investors in the current dynamic environment,” he adds.
Structure considerations
It is important to have support from trusted advisors at each stage of a deal’s journey. Before embarking on a new deal, a well-thought-out structure and proper processes and controls should be put in place to mitigate potential issues that may arise. Depending on the size of the deal, companies may consider utilizing a third-party, such as Citrin Cooperman, to help assess their processes, procedures and controls. As the industry becomes more reliant on technology and artificial intelligence, it is also important that companies consult with professionals on IT advisory and cybersecurity services.
Identifying opportunities and capital raise
In the current environment of more expensive capital and tighter liquidity, companies need to be creative in identifying opportunities that will allow for a successful deal. Taking the time to perform thorough due diligence procedures and evaluating all potentially available tax benefits prior to an acquisition is essential.
Managing deal flow and financial analysis
Once a deal comes to fruition, managing the deal requires thorough oversight to manage cash flow and profitability to maintain compliance with lender and investor requirements. In addition to financial statements and tax compliance services, Citrin Cooperman offers services such as investment planning and carried interest analysis, among many other advisory services, to help real estate owners analyze and manage their investments.
Maximizing profits and minimizing tax impacts
Thorough analysis of the operations of a real estate entity and maintenance of up-to-date books and records allows owners to maximize profits. “It’s very hard to keep your lights on and keep your talent motivated,” says Mindick. Citrin Cooperman can step in and offer solutions, such as outsourcing accounting functions or filling an interim gap in a CFO or controller position.
It is no secret that there are tax advantages to owning real estate, such as accelerated depreciation or the ability to take advantage of energy efficiency credits. It is also important for owners to understand the real estate professional rules to assist in personal tax planning. Citrin Cooperman helps clients understand the tax options and plan accordingly.
Exit
An exit does not need to be a sale – it can be a workout or a restructuring. There are many strategies to an exit that require thorough projections and modeling from a financial and tax perspective. “When people are restructuring deals there are all different types of scenarios that play out related to how it affects considerations such as 1031s and tax deferrals that get highly complex very quickly,” says Mindick. “We’re assisting our clients through that process and helping them plan it from a business perspective on whether it makes sense to hold onto an asset,” he adds.
Strong guidance and advisory services are important at each stage of a deal to keep it on track, avoid pitfalls and deliver a positive outcome for investors. “At Citrin Cooperman, we also recognize how important it is to have dedicated and entrepreneurial people that are on each account,” says Mindick. “It’s not just about having the services, but the ability to bring them to fruition and apply them to the client’s businesses is something that we do really, really well.”
Citrin Cooperman’s Real Estate Industry Practice is well positioned to help your business successfully navigate the complexities of a deal at every stage. For more information, please contact Mark Mindick at mmindick@citrincooperman.com or info@citrincooperman.com.
“Citrin Cooperman” is the brand under which Citrin Cooperman & Company, LLP, a licensed independent CPA firm, and Citrin Cooperman Advisors LLC serve clients’ business needs. The two firms operate as separate legal entities in an alternative practice structure. The entities of Citrin Cooperman & Company, LLP and Citrin Cooperman Advisors LLC are independent member firms of the Moore North America, Inc. (MNA) Association, which is itself a regional member of Moore Global Network Limited (MGNL). All the firms associated with MNA are independently owned and managed entities. Their membership in, or association with, MNA should not be construed as constituting or implying any partnership between them.