Two investors review AI due-diligence on a deal. The AI flags a major problem: no asset-level details or concrete numbers, making underwriting impossible. Strong sector and operator story, but the missing data is a dealbreaker.
Are you in the deal room?
Thought about it for 12 seconds and it said this is not a yes as is. It's a conditional maybe that needs a real underwriting package before capital goes hard. Let's see what's going on with it. What it likes is the sector thesis is real. Operator story is directionally strong. Strategy has multiple value-add levers. So these are all components it's saying is good. The part that it's worried about is the deal package is not asset level. Yeah, it's true. It's what?
It's true. It's not. There's no deal numbers whatsoever.
It says here there are inconsistent terms across documents. Let's see what's going on here. It says early exit is shown for after 6 months in the one-page summary, but after 12 months in the deck. So what it's doing is just— it's going to point at inconsistencies for one reason. So the one-pager says it's a $150 million target raise, while the operating financial decks show a much smaller visible Near-term source and uses footprint. Okay. Makes sense. And so again, one document's going to suggest something other than the other. So the suggestion is made that you make everything cohesive, make everything sound the same. One document references $90 million committed already from institutions, but there is no evidence package, subscription status breakdown, or soft versus hard commitment detail. So again, it's just suggesting the things you'll need. To validate that claim. And then the pro forma has a major red flag. So one, on the acquisition pro forma income statement, year 6 revenue jumps from $78.5— jumps to $78.5 from $45.6 in year 5, then drops back to $48 in year 7. One revenue line appears duplicated. Medicare— I'm sorry, Medicaid waiver room and board in year 6, the same value has as the private pay room. Okay. So basically it's just going through kind of making it into Swiss cheese, brother. Does it just go on? Here's an issue. Here's an issue. Here's an issue. Here's an issue. Like, not that your deal's bad. These are the spots you're going to get stuck. These are your mouse traps.
