Expert Due Diligence and Analysis
- Timberland Investment
The Woodland Company
Successfully closing a complex timberland transaction involves partners with specialized experience such as legal, tax, financing and accounting. The Woodland Company has a network of trusted advisors that provide these services. We understand the risks inherent to timberland purchases and design and implement appropriate mitigation strategies
The acquisition process is comprised of many key steps that are applicable to most timberland acquisitions. The steps are organized into five phases:
Phase 1: Property Identification
Our extensive network of industry and private clients allows us to look at many timberland investment opportunities. The Woodland Company weighs the opportunity against our clients' investment goals to find the best fit.
Phase 2: Initial Review of the Opportunity
The property data assessment is the primary function of the second stage and one of the most critical elements of our overall acquisition process. During the initial review process, we look over numerous and varied factors including;
- Timber age classes, volumes and quality;
- Current timber pricing and future trends for the wood basket;
- Land and timber data verification;
- Value-added income potential;
- Higher and better use potential; and,
- Market analysis specific to the property (i.e., number of mills and volumes used, quality of local markets, etc.).
Phase 3: Investment Modeling and Valuation
Throughout the evaluation process, we will take the information gathered and input it into our proprietary model, which we have developed and refined from billions of dollars of acquisition modeling. We will review the model assumptions, inputs and results with our clients to determine whether it is viable to proceed with a candidate property, and if so, at what pricing levels.
Phase 4: Negotiation
The negotiation process involves assisting the client with as much information as possible to tip the negotiation process in our favor. Our network of advisors help to round out the cadre' and complete the process to give our clients a competitive advantage.
Phase 5: Post-Contract and Pre-Closure
The final stage of The Woodland Company's acquisition process includes an extensive data request of the timberland seller. Additional data such and road maintenance plans, miscellaneous GIS layers, environmental surveys, and easements are assimilated to the company standards. A final timber inventory and audit is conducted to confirm the timber inventory and condition of the property. Additionally, a third party certified appraisal of the land is recommended. Our legal, tax and accounting partners are integral in the stage to provide for seamless closings. This last stage of the acquisition process is designed to identify any final issue that may trigger a clause that would prompt for an end to negotiations or alteration in purchase price.