When any asset is below its capability, is stagnate or is negative on the balance sheet, especially as complex as heritage assets whether being a historic property, a private island, a private or public park or garden, an art collection, or even a museum, these assets need to be treated as if they were “sustainable businesses” if to survive and to ensure the legacy for present or future owners and shareholders alike.

 

The first step towards sustainability is to conduct what Festina Lente terms as a proper Opportunity Analysis in order to understand the true value of the asset, and provide the implementation plan to ensure its proper valuation from mid to long term, whether it is for a re-investment, capital budgeting or disinvestment needs.

 

This type of analysis consists of a full report, including the results of activities such as:

  • Property Analysis – technical & urbanistic, fiscal, legal, proprietorship & estate status, heritage & Conservation status, risks, intangible characteristics, corporate financial analysis (in the event the property or asset is used as part of an existing business activity), etc.
  • Preliminary target market analysis
  • Construction of conservative Assumptions and the identification of solid Business Scenarios (main & secondary)
  • Micro & Macro economic data research
  • Risks analysis
  • Market research
  • Feasibility Report
  • Identification of key investment points
  • Main, secondary and Consolidated Free Cash flow Analysis of business scenarios
  • Internal Rate of Return and Net Present Value
  • Valuation conclusions: Proposed implementation Plan (considering a lease, buy, disinvestment, re-investment, etc.), and the identification of a “fair” and true economic value for the asset considering the time value of money.

 

Thanks to this report, an owner of a heritage or trophy asset, such as a historic palace or a private museum, will be able to properly understand:

  • How much the asset is really worth (both intagible and tangible)
  • What to do so the asset is economically sustainable, and not burdensome on the balance sheet
  • Ensure a solid future for the owner’s legacy, brand awareness and its role in the community
  • Decide when, how and what to do with the asset
  • Properly integrate the asset in the owner’s portfolio according to their wealth or investment plan
  • Will have acquire the tools needed to have access to a larger and more ample range of financing or co-investment possibilities for their assets
  • In the case of disinvestment, ensures a best price value for the vendor and proper target allocation in the market

 

 

 

Festina Lente Wealth Art Advisory Ltd.

 

Salisbury House, London Wall

London EC2M 5QZ

United Kingdom

Tel. +44 (0) 20 32902594

 

 

info@festinart.com

 

Festina Lente has representatives in the UK, Italy and Eastern Europe.

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