Virtas Partners was engaged by a casino and gaming focused REIT client to perform diligence and assess performance of 4 casino properties.
Client Need
Our REIT client was evaluating the acquisition of a real estate casino (and racing) property while simultaneously assessing the performance of three assets owned by the potential acquiror of the new property. The other three properties were already within their existing portfolio and contained both hotel and gaming operations.
The client sought an experienced advisor to quickly conduct buy-side due diligence on the potential acquisition and to perform a focused performance and quality of earnings review of the three existing casino properties.
Tailored Solutions
- Partnered with management teams and bankers to rapidly assess operational and financial performance across all properties.
- Conducted a detailed financial analysis including trend analysis, management adjustments to EBITDAR, working capital assessment, and KPI analysis.
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Identified and quantified necessary adjustments to reported EBITDAR and delivered a comprehensive Quality of Earnings (QofE) report for each property and a consolidated view for portfolio-level insights to understand run-rate considerations and other operational business drivers.
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Evaluated and documented debt and debt-like obligations and performed a net working capital assessment.
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Reviewed accounting practices to highlight non-GAAP treatments and reconciled internal to audited financials.
Value to client
- Provided the client with a trusted industry expert to support decision-making with detailed diligence findings.
- Validated the financial information provided by the acquisition target.
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Enabled a clearer understanding of property performance and financial health to support both acquisition and portfolio strategy.
Capabilities
- Deep industry, business model, and functional experience
- Financial analysis
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Rapid deployment of deal team, delivering insights and reporting under a tight timeline
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Financial due diligence