Our website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.

Home Finance Delivering commercial due diligence to support PropTech investment opportunities

Delivering commercial due diligence to support PropTech investment opportunities

by Jessica Weisman-Pitts
0 comments
iStock 12878994621

Delivering commercial due diligence to support PropTech investment opportunities

By James Tetherton, Senior Partner at GRAPH Strategy

The built environment shapes our lives, our world, and our future. As one of the world’s biggest asset classes, the property sector touches every aspect of the economy.

Technology has always been an indispensable and revolutionising force in the property sector. In recent years, we have seen a proliferation of software technologies reshaping how we design, construct, and manage structures.

From 3D modelling and simulation software to project management and Building Information Modelling (BIM) systems, software technologies offer an array of tools and solutions that facilitate better design, efficient project management, and enhanced sustainability.

@media(max-width:767px){ .single-post .penci-single-block .container.penci_sidebar:not(.two-sidebar) #main { width: 100% !important; } }

Investors are showing increasing interest in PropTech businesses, making this one of the most dynamic and promising investment trends in today’s business landscape.

Using due diligence to support investments in prop tech

Recently, our team provided comprehensive commercial due diligence to support Lonsdale Capital Partners’ investment into tech-enabled property consultancy service provider, GIA.

GIA, which has offices across the UK, has more than 30 years of experience advising clients and navigating complexities in the ever-changing real estate environment. As the leading practice in Rights of Light, Daylight and Sunlight, Neighbourly Matters, Wind Microclimate, Measured Surveys and Plan Tech in the UK, the technology-led company tackles challenges in the built environment.

@media(max-width:767px){ .single-post .penci-single-block .container.penci_sidebar:not(.two-sidebar) #main { width: 100% !important; } }

GIA is a great example of how the construction industry is increasingly adopting technology to drive greater efficiency and effectiveness. GIA’s offering is underpinned by its proprietary technology platform, Phoenix. This revolutionary app enables complex analysis of daylight, sunlight and overshadowing to be undertaken quickly and accurately, helping clients to proactively identify opportunities and risks.

We were approached by Lonsdale thanks to our experience delivering commercial due diligence across the built environment, with a particular focus on construction tech. The deal extends our strong track record of consultancy within the sector, having previously collaborated with investors on a broad array of technology-focused deals, spanning from environmental consulting software, through cost analysis systems, to facilities management tools.

Following the investment, Lonsdale will now support GIA to scale beyond the UK and Republic of Ireland into other regions, and to expand into other service lines, such as wind and solar analysis.

Advice for businesses from the commercial due diligence process

@media(max-width:767px){ .single-post .penci-single-block .container.penci_sidebar:not(.two-sidebar) #main { width: 100% !important; } }

External investment can offer businesses more than just additional funding – it provides access to a wealth of experience, proven best practices, and a network of experts with specialist knowledge.

In the current macroeconomic environment, however, investors are scrutinizing potential investments more closely than ever, so any business looking to secure backing should prepare for the due diligence process thoroughly.

Based on our experiences in this sector, here are 3 keys to success for SMEs looking to attract investment:

  1. Define your market – Most market research and commercial due diligence reports will reference an enormous total addressable market (TAM) that could be irrelevant for fast-growing SMEs. Narrowing down to the serviceable market of ‘sweet spot’ customers helps businesses understand more precisely where their growth will come from and articulate a more compelling value creation story to potential investors.
  2. Understand your differentiation – Businesses should thoroughly analyse their business model, products, and services to identify what sets them apart in the market. Identifying these differentiators and understanding how they interact with current market trends and customer needs can help businesses craft a strategy for growth going forward that is both realistic and attractive to potential investors.
  3. Consider the intersection of software and service – Traditionally, investors have favoured a software-based business model due to scalability and high margins. However, there remains a big opportunity for people-based advisory firms to support their customers by offering solutions that blend advisory services with a software offering.
Recent Post