logo ACQUISITION PROCESS At Molpus, we understand that a critical component of our clients meeting their investment goals is understanding a client’s investment objectives and then working to identify candidate properties that we believe will meet those investment objectives. Over the course of a calendar year, Molpus receives hundreds of timberland acquisition opportunities to evaluate. Often times, given our reputation, the acquisition opportunities are not generally available to other managers. These opportunities are evaluated through a many-layered evaluation process, and, in most cases, these opportunities are not recommended to a client because they do not meet client investment objectives. For the successful close of an investment, the evaluation and timberland acquisition process for client property will include the following: Identify candidate properties Evaluate opportunities Model the investment Review model results with client Negotiate purchase agreement Conduct final due diligence and close STEP 1 IDENTIFY CANDIDATE PROPERTIES We are able to utilize our extensive networks in the regions and the industry, supported by technology, to discover timberland properties for possible evaluation. STEP 2 EVALUATE OPPORTUNITIES During the evaluation process, we look over numerous and varied factors including, but not limited to: Timber ages and volumes Current timber pricing trends for the region Acreage verification Other, value-added income potential such as land sales, carbon projects, conservation easements, mitigation banking, etc. Higher and better use potential We perform market analysis specific to the property (e.g., number of mills and volumes used, quality of local markets). We also conduct site visits to the property to verify the seller’s data, determine site productivity and timber quality, interview current personnel connected with the property, and analyze the management history on the property. STEP 3 MODEL THE INVESTMENT Throughout the evaluation process, we will take the information gathered and input it into our proprietary model, which we have developed and refined for more than two decades. STEP 4 REVIEW MODEL RESULTS WITH CLIENT We review the model assumptions, inputs and results with our clients to determine whether it is viable to proceed with a candidate property and, if so, at what pricing levels. STEP 5 NEGOTIATE PURCHASE AGREEMENT If a candidate property has been approved by our acquisition team and, where appropriate, approved by our client, we facilitate and oversee the negotiation of a purchase agreement. STEP 6 FINAL DUE DILIGENCE AND CLOSING After negotiating the purchase agreement, we proceed with pre-closing due diligence—such as engaging: Outside counsel for contract and title review A third-party environmental company to perform a Phase I environmental site assessment A third-party timber inventory verification—and facilitate the transaction until closing Once a candidate property has been acquired, Molpus seamlessly transitions to the day-to-day management of the property as opposed to managers who have to outsource actual management to third-parties. Learn more about the timberland management process. WORK WITH MOLPUS WOODLANDS GROUP Molpus is ready to speak with you about your investment goals. We can help you identify and acquire timberland property that meets your objectives and returns the value you want. Start the Process Today