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Rainmaker is a specialty
consulting firm focusing on senior housing development consulting including
the production of retirement
housing financial feasibility studies. prototypically, retirement
housing financial feasibility studies are actually pro
forma financial presentations. The reason the resulting analysis
report is a pro forma financial presentation is that the assumptions used in
the resulting financial model are, by and large, based upon the conclusions
and data set forth in the senior
housing market feasibility study prepared for the proposed project as
part of the pre-development phase tasking. A financial feasibility
analysis approach focuses on the consultant's forecast opinion letter.
A pro forma financial presentation is not an analysis that is covered by an
opinion letter. Now that
we have the semantics out of the way, we can focus on what you will receive
when Rainmaker Marketing Corporation provides your pro forma financial
presentation. The production of the report is based upon an analysis
of conditions that can be reasonably expected to correspond to a
"best-case scenario", "middle-case scenario" or
"worst-case scenario" assessment of the actual ongoing operations.
Accordingly, the initial analysis is to determine a working range of operating
income the proposed project may in fact be able to generate assuming no
capital costs. This is called the "Stabilized Operating Pro Forma
Financial Analysis" because it focuses on the cash flows from
operations only. The reasoning for this is that if the revenues the
market feasibility analysis has demonstrated as being supportable, then
these must be adjusted to reflect the direct expense of ongoing
operations. The output of the Stabilized Operating Pro Forma Financial
Analysis is a range of EBITDA income streams (also called "operating
income"). The resulting streams are very important to the second
step - development and construction capital flows. The
Development & Capitalization Analysis undertakes the analysis of the
potential cash flows pertaining to the costs of acquiring the assets that
would be theoretically required to produce the assumed EBITDA income
streams. The results are back-checked against the EBITDA income
streams to determine the limits that can be reasonably expected with respect
to construction and permanent debt support the project can sustain.
The final step is the
creation of a consolidated pro forma financial presentation that blends the
findings of the Development & Capitalization Analysis with Stabilized
Operating Pro Forma Financial Analysis to create a final combined
presentation that covers the pre-construction phase, construction phase and
post-construction phase operations.
Every Rainmaker report is
professionally-formatted and includes all spreadsheets, a technical analysis
presentation, charts and graphics, and the empirical assumptions used in the
creation of the report. All done and forwarded to the client in 14 to
21 days.
Finally, all of our services
are aimed at garnering you success in capitalizing your seniors
project. Have you considered the potential an equity syndication of
fractional real estate ownership interests may provide? Get your due
diligence done. There is a platform available to allow you to garner
equity capital investment as early as the pre-construction phase for
projects with budgets of at least $2.5 million.
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