Insights
Financial Due Diligence for reAlpha’s AI-Driven Real Estate Acquisition
Financial Due Diligence for reAlpha’s AI-Driven Real Estate Acquisition
EBITDA
Normalization
12+
Operating Periods
Client Overview
reAlpha Tech Corp. (Nasdaq: AIRE) is an AI-powered real estate technology company revolutionizing the U.S. real estate market through a vertically integrated, data-driven platform. The company focuses on streamlining property transactions through AI-based brokerage, mortgage, and title services.
reAlpha Tech Corp. (Nasdaq: AIRE) is an AI-powered real estate technology company revolutionizing the U.S. real estate market through a vertically integrated, data-driven platform. The company focuses on streamlining property transactions through AI-based brokerage, mortgage, and title services.
Engagement Overview
reAlpha engaged our team to perform a comprehensive financial due diligence review in connection with its proposed acquisition of U.S.-based target companies specializing in AI-driven real estate solutions. The objective was to assess the target’s earnings quality, cash flow stability, and potential financial and operational risks.
reAlpha engaged our team to perform a comprehensive financial due diligence review in connection with its proposed acquisition of U.S.-based target companies specializing in AI-driven real estate solutions. The objective was to assess the target’s earnings quality, cash flow stability, and potential financial and operational risks.
Key Insights
The due diligence report provided deep insights into:
Revenue concentration and segment performance
Market and trend analysis
Working capital efficiency and liquidity risks
Forecast realism and deal valuation sensitivities
The due diligence report provided deep insights into:
Revenue concentration and segment performance
Market and trend analysis
Working capital efficiency and liquidity risks
Forecast realism and deal valuation sensitivities
Approach
Our team conducted a three-year historical review, focusing on:
Revenue recognition under ASC 606
EBITDA quality and normalization adjustments
Working capital trends and seasonality
Tax compliance and contingent liabilities
Validation of forecast assumptions and valuation drivers
Our team conducted a three-year historical review, focusing on:
Revenue recognition under ASC 606
EBITDA quality and normalization adjustments
Working capital trends and seasonality
Tax compliance and contingent liabilities
Validation of forecast assumptions and valuation drivers
Impact
Our findings enabled the client to make an informed investment decision and negotiate favorable deal terms. By identifying key risks and valuation sensitivities, our work safeguarded the client’s investment and contributed to stronger post-acquisition value creation. This engagement demonstrated our expertise in cross-border transaction advisory and financial due diligence for AI-driven enterprises.
Our findings enabled the client to make an informed investment decision and negotiate favorable deal terms. By identifying key risks and valuation sensitivities, our work safeguarded the client’s investment and contributed to stronger post-acquisition value creation. This engagement demonstrated our expertise in cross-border transaction advisory and financial due diligence for AI-driven enterprises.