Cost Analysis is an important part of Receivership. Often times there are many costs including salaries, contracts and premiumsthat have not been recently reviewed. They may have been inflated over time or have been mismanaged. Once addressed these costs can be minimized and the properties often times can become self supporting during the Receivership.
Once a Receiver is in place and has the authority to manage and control the finances many issues can be addressed and resolved. With a new party managing the finances items like vendor contracts can be re-negotiated and often unnecessary contracts can be cancelled completely. Taking financial control, analyzing the costs, and reviewing the books help to determine what a projects full potential can be and help to create an understanding of a property's potential value. Overall, having a Receiver come to a failing property to analyze the costs, evaluate the asset, create a marketing strategy and take financial controls will most definitely assist in waste control. It will preserve and protect the asset and will create value for a future sale.
