Know Where You Are
We prepare studies that present your projects or your tourism property objectively in economic or value-based terms.
Whether you require a feasibility study for the construction of a new hotel property, a restructuring report, or a company evaluation – we have the operative and theoretical know-how to prepare an analysis with industry-specific practical value. Practical experience is particularly indispensable for an inventory evaluation or
Alternative Dispute Resolution (ADR) refers to alternative methods for dispute resolution apart from state court proceedings. We prepare court and arbitration reports according to § 317 ff BGB. We create special formats for individual hotels or tourism-specific questions within the framework of market analyses or specific requirements.
Our consultants have been involved in the preparation of expert opinions and theoretical models for around 20 years and have extensive practical experience.
- Feasibility Study
- Operation Valuation
- Inventory Evaluation
- Lease Determination
- Court and Arbitration Reports
- Special Formats
- Due Diligence
New construction, purchase, or expansion investment – expertise is indispensable
When building a new hotel property, we must first consider pre-feasibility. When buying or making an investment decision, the feasibility study is the essential basis for the financing decision.
In order to offer you everything from a single source, we work together with experienced business partners in technical and legal due diligence.
Due to our many years of expertise, our studies are recognised by leading national and international banks, funds, and project developers as the basis for an investment decision.
Pre-Feasibility: As a rule, the following points are considered:
- Market and competition analysis
- Operational management practices
- Profitability calculations and forecasts
Feasibility: Depending on the exact objective of a feasibility study, the following components are usually included:
- Spatial and function planning
- Estimation of the investment volume
- Return calculation for the investor and the operator
- Lease solvency
In order to offer you everything from a single source, we cooperate with experienced business partners from our network (lawyers, accountants/tax consultants, and/or architects/construction engineers) to bring technical and legal due diligence.
Even serious company crises can be overcome if those involved pull together.
In addition to these topics, an important focus of our restructuring consulting is the restructuring report, which is based on the IDW Standard ES6 (Standard des Instituts der Wirtschaftsprüfer in Deutschland e.V.). The goal here is to develop a business-based continuation projection.
Especially in times of crisis, quick decision-making is important. Industry expertise and specific empirical values are therefore indispensable to get to the point quickly and competently. A restructuring report provides legal certainty about a company’s ability to continue and restructure as well its obligations under insolvency law. In addition, the medium-term financing requirements must be determined and the business plan for the next three financial years must be evaluated for plausibility.
In order for a restructuring report to determine the ability of a company to restructure and to continue forward in accordance with IDW S6 (i.e. to be checked independently by a neutral third party), a comprehensive catalogue of criteria must be taken into account including the economic and legal foundations, historical and current assets, financial and earnings situations, as well as the causes and course of the crisis. In the next step, a restructuring concept and an action plan are drawn up in order to eliminate the major reasons for the crisis. On the basis of this information and the business plan, a statement is made on the company’s ability to continue and to restructure. In particular, this raises the question of the extent to which the company will be able to meet its future financial obligations. The statement contains an assessment of a possible status of over-indebtedness under insolvency law.
Our focus in restructuring reports is usually on developing a new strategic direction for the company to be restructured and indicating technically effective ways out of the crisis.
In both a transaction and a loan, the question arises as to the value of the company and/or the property. The answer results from the proper selection of the truly value-relevant factors as well as their correct determination.
In the review, we determine the value of the company or real estate on the basis of recognised business management methods. The value of your company can be determined in a generally binding manner from the income and / or asset value procedure, the discounted cash flow method, or the comparative value method. Whether it is valuation of the hotel property or the inventory, we determine the value of the inventory or the real estate value on the basis of recognised business methods and models. The value of your company can be determined in a generally binding manner using the income and / or asset value method, the discounted cash flow method or the comparative value method. DICON has extensive experience and references in the valuation of hotel properties.
Whether you are selling your business, renting a new one or making a purchase – when it comes to evaluating the inventory, everyone must be able to rely on a realistic evaluation.
In principle, a distinction must be made between the valuation method regarding the continuation value (going concern) and the market and liquidation procedure (break-up). The continuation value is the value that each item has for a business within the total purchase price if the business is continued. In terms of tax law, the continuation value corresponds to the partial value. According to § 10 BewG, it consists of the sum of all partial values.
As part of the continuation value assessment, it is assumed that a business with the relevant assets will be continued in a similar form in the future and that the inventory parts are accordingly suitable and functional for further use. The assets concerned are operational and necessary and/or useful for the operational process. The calculation of the continuation value is based on the replacement prices. It can be assumed that assets of comparable design, workmanship, and condition will be replaced.
In the case of individual sales, e.g. as part of a closure of a business or insolvency proceedings, the so-called liquidation value or individual market value is determined. The liquidation value is the sum of the individual assets of a company in the event of the dissolution of the business or the sale of individual assets. The amount of the liquidation value is strongly dependent on the available time frame.
A reasonable lease is a decisive factor in determining whether a company can establish itself on the market.
The amount of the lease is of particular importance for the operation of hotels and restaurants. If essential principles are not sufficiently taken into account in the assessment, there is a risk of failure – both for the operator and for the owner.
Although the rent of the competition is generally not known, it contributes significantly to the profitability of a business due to the possibly superior competitiveness of the rival companies. With this context, the neutral and technically accurate appraisal of the rent level is essential for the economic success of the business and for a sustainable interaction between lessee and lessor.
Court and Arbitration Reports
The aim of an arbitrator’s report is usually to clarify differences of opinion by an independent, impartial, and professionally competent expert. They are usually faster and less costly than court proceedings. A distinction is made between factual, valuation, and adjustment reports.
Complex questions, individually formatted: whether you are looking for topics with respect to tourism issues that are important for you and your concept, trends and developments in the market, or technologies – we are at your disposal with our interdisciplinary network.
Analysis of the Sharing Market and its Impact on the Budget Segment
This study examined the development of the housing division, analysed conditions and driving forces, and derived development potentials. These were then related to the company’s offer and evaluated with regard to their strategic relevance. The study was commissioned by a nationwide accommodation company.
Analysis of the Travel Behaviour of Young Urban Guests on a Budget
In the study, an online questionnaire was developed and evaluated on the basis of common theoretical concepts for city trips. The results were incorporated into a series of group discussions with young adults in order to obtain deeper perspectives that could be used for product design and communication. The study was commissioned by a hostel operator.
A risk assessment with due care is referred to as due diligence.
Whether it is a share or an asset deal, due diligence is crucial in every corporate transaction because it protects both the buyer and the seller. A Due Diligence report is usually divided into the areas of Financial Due Diligence, Market Due Diligence, Legal Due Diligence, and Tax Due Diligence. In addition to market analysis, the business model is also important to market due diligence and hotel-specific expertise is indispensable to its examination and evaluation.
For legal and tax aspects in particular, we work together with proven experts in the preparation of a comprehensive due diligence, whose cooperation with tourism companies has proven itself over many years. The essential results are presented in a summary and discussed with the client. The aim of due diligence is to know the main risks involved in a business takeover.
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