When preparing for a merger or acquisition, conducting targeted and thorough due diligence is an important part of the deal process, because it can help identify potential issues that could have a material impact on the transaction. Lease abstracts are a critical part of that due diligence when the transaction involves commercial real estate leases. Using a generic lease abstract form or lease abstract template may suffice when the target company has just one, or very few, commercial real estate leases in place, and when those leases follow the same general format. When the transaction is large or complex, a law firm or corporate client may choose to use professional lease abstraction services instead of using a lease abstract form or checklist.
A lease abstract is a summary of the key points included in a commercial real estate lease. Lease abstracts typically highlight the financial terms of the lease and summarize any legal or business provisions that may be unusual or relevant to the proposed merger or acquisition. Effective lease abstracts need to be detailed enough so that the reader can understand the information presented and use it to make reasonable determinations.
Using professional lease abstracting services can be particularly valuable when:
- There are many commercial leases that need to be reviewed.
- Those leases are all formatted differently.
- The leases have been amended multiple times.
- There are significant leased assets involved in the merger or acquisition deal.
- The transaction is happening in a short time frame or on an expedited timeline, such that many leases need to be abstracted in a short time.
Firms that do not have the personnel and other resources needed to prepare lease abstracts efficiently should also consider outsourcing the abstracting process to a legal services provider. Outsourcing lease abstract services can save both time and money, and can help ensure that lease abstracts include all of the information about existing commercial leases that may be relevant to an acquiring company.
Baer Reed provides lease abstract and other legal services to corporate legal departments and law firms looking for professional, cost-effective services. Call us today at (888) 433-1990, or contact us online, to learn more about the full suite of services our legal professionals can provide.
Mr. Reyes graduated with honors from the Ateneo de Manila University, where he received the Procter and Gamble Student Excellence Award. He obtained his Juris Doctor degree from the Ateneo de Manila School of Law. During law school, Mr. Reyes was part of the Philippine delegation to the Willem C. Vis International Commercial Arbitration Moot held in Vienna, Austria. He was also a member of the Ateneo Society of International Law and the St. Thomas More Debate Society. He completed his internship at the Public Attorney’s Office. He wrote a thesis entitled: “To Kill A White Elephant: An Analysis of the Fiduciary Exception to the Corporate Attorney-Client Privilege”. Mr. Reyes is admitted to practice law in the Philippines and the State of New York.
Ms. Lardizabal-Manzano is a graduate of San Sebastian College-Recoletos, where she earned her B.A. in Political Science. In 2003, she received her law degree from Lyceum of the Philippines and was admitted to practice law in 2004.
Matthew Hersh earned a B.A. in Political Science from Columbia University in 1990 and graduated cum laude from Georgetown University Law Center in 1999. He also holds a master’s degree in international relations from the Georgetown University School of Foreign Service.
Cap. Avi Levak (Res. IDF) graduated from from Israel’s prestigious Ben-Gurion University of the Negev with a Bachelor of Science in Computer Science and Mathematics. He is also a Leadership and Communication coach trained in TuT coaching by Alon gal in Israel. Avi specializes in high-level, in-depth analysis of business and client needs, within systems and software strategy and architecture.
Ms. Tyler graduated cum laude from Georgetown University and received her law degree, cum laude, from Georgetown University Law Center. During law school, she interned at the United Nations Economic Commission for Europe. She also worked on The Tax Lawyer journal and was a member of the award-winning Barristers’ Council Mock Trial Team. Ms. Tyler is admitted to practice law in the State of California and the District of Columbia.
Ms. Cruz-Anonuevo graduated cum laude and top nine in her batch from Miriam College with a degree of Bachelor of Arts in InternationalStudies. She obtained her Juris Doctor degree from Ateneo de Manila University School of Law in Rockwell. During law school, she interned in Rivera, Santos, Maranan & Associates. She was also part of Ateneo’s Labor Law Bar Operations. She wrote her thesis on, “Stealing Privacy: Limitations on Media’s Photographic Invasion.,” Ms. Cruz-Anonuevo is admitted to practice law in the Philippines.
Ms. Aquino-Batallones obtained a Bachelor of Arts degree in Development Studies (with Minors in Global Politics and Hispanic Studies) from the Ateneo de Manila University. In 2011, she received her Juris Doctor degree from Ateneo de Manila University School of Law. During law school, she interned at Romulo Mabanta Buenaventura Sayoc & de los Angeles then became an intern of Ateneo Legal Services Center’s Clinical Legal Education Program.
Mr. De Guzman graduated from San Beda College with a degree of Bachelor of Arts Major in Economics and received his law degree from San Beda College of Law. He is multilingual and is fluent in three languages: Chinese, Filipino, and English. He was admitted to the Philippine Bar in 2003.