M&A Lease Advisory

We provide comprehensive lease reviews of any leased properties that you are contemplating in an M&A transaction. We analyze all lease terms, including assignability, change of control, expansion rights, renewal notices, and other key concepts that will impact your understanding of the assets. 

Our team will guide you in assessing current rents versus market levels for any leased properties. We examine recently executed and asking rents for properties of similar quality, use, location, and size in order to determine a “market” rent for the subject property, which will then be compared to the existing rent based on the current lease. 

We analyze critical site-level economics of subject properties including health ratios (rent/sales) and rent coverage ratios (EBITDAR/rent) to understand a unit’s financial performance and the burden of a proposed or existing rent expense. These metrics assess a tenant's ability to meet rental obligations and maintain sustainable profitability at the subject location. We then compare these metrics to industry and brand averages.