Sale, purchase, privatization and financing of Spa centers in Mexico

Solly Assa is a New York-based businessman with a long-term commitment to the real estate industry. In 2000, Assa started his own company - Assa Properties and, since then, has acquired more than 3 million square feet of assets across the United States and Mexico.

Assa recommends that if you are an investor of real estate or a developer interested in privatizing, buying or investing in spas in Mexico, you should prepare yourself first. There are a few things that should be in the hand of every interested investor before starting any process in hospitality or tourism. These documents contain expert analysis, projections, and legal content based on experience in from the field.

Solly starts with a list containing all the appropriate spas for acquisition. Identifying all subjects that meet the criteria is the key to success down the line. Next, an in-depth analysis of the intended acquisition is recommended, so that all the business performances can be known early in the process. Preparing an adequate business model and preparing projections of future cash flows as well as projections of future income statements, balance sheets and other financial elements will limit the chance for future derivations.

Every experienced real estate developer should know by now that every purchase needs its own set of risk analysis (I.E.: scenario analysis, sensitivity analysis, breakpoint point of profitability, time series analysis, Monte Carlo simulation and regression analysis.) These analyses will give a better picture in the future of investments in the spa, about operating costs, budgeting of business (operational and continuous) etc.

There is also a set of other documents including programs, preparations and analyses that will clear the entire picture of the spa center in question. Solly Assa mentions:

• The investment plan, and other plans containing the fulfillment of other conditions set out in the privatization procedure, negotiations with the relevant agencies
• Analysis of discounted cash flows and optimal duration of the investment in order to maximize return on invested capital
• Structuring financial resources (investment capital, debt capital, mezzanine) and modeling the price of capital in the structure of such a structure
• Loan repayment analysis, defining reserve funds for loan repayment , modeling the amount of funds for the investment maintenance of a spa
• Assessment document of the value of spas
• A document containing the calculation of the indicators of the financial effects of investment in the equity multiplier(this is the key parameter according to Assa, as it shows key metrics such as internal rate of return (IRR), net present value (NPV), and other financial coefficients like liquidity, solvency and profitability)
• A document containing the defined the bid price
• Contacts of banks and other sources of financing
• Preparing a possible exit strategy for investing in the spa center is the last thing you will need to do if you are willing to invest in spa centers in Mexico.

By now, you will have covered more than 99% of the parameters in the process of sale, purchase, privatization or financing of spa centers. With this you are almost certain to make the right decision.