Elise Capital Quarterly Journal: Q2 2023
Evaluating a Deal
Current market conditions cause for scrutiny in the evaluation process of deals across all industries. As an investor, what are the key items to consider in your evaluation process to best protect your investment?
Assess Market Trends
While the deal being evaluated may be improving in performance, how has the market responded? The quote a rising tide floats all boats still holds true in this industry. A market with solid growth indicates positive potential for an asset at a stabilized rate of performance.
Understand Back Up Strategies
Change is inevitable. It is important to have not only a one scenario strategy, but also additional strategies in case performance exceeds expectations or on the other hand does not meet expectations. There are new opportunities forming every day to increase revenues, control expenses and drive profitability.
Confirm Best Case vs Base Case
At Elise Capital, we underwrite our deals in a base case scenario while we set a budget for the management team in a best case scenario. This means for our investors there is still room to receive stronger returns while our operations team takes on the challenge to perform to the best of the asset’s capability.
"What you do today can improve all of your tomorrow’s." - Ralph Marston
Thank You
Elise Capital is a firm powered by our community. Thank you for your continued support in our journey. We look forward to continuing our quarterly updates with you. More to come!
Hospitably,
Kendra Plummer
