Monday, December 03, 2007

Maximimize M&A Real Estate Returns

"Getting an early handle on a company’s real estate and facilities can be a powerful tool in increasing the profitability of a merger or acquisition...

"With real estate and facilities representing the second- or third-largest expense on the average company’s balance sheet, how the real estate is handled prior to, during, and after a transaction can be critical to the success of the overall transaction.

"One of the keys to help maximize shareholder value is to carefully evaluate the entire real estate portfolio — both owned and leased facilities — as early as possible, solidify a real estate strategy that is in alignment with your business goals and objectives, and then ensure that the necessary resources are in place to implement once the transaction is complete.

"There are three critical steps or phases of a merger or an acquisition; preliminary due diligence, prior to the transaction; portfolio assessment and strategy, during the transaction; and integration and implementation, after the transaction has closed..."

Read more in Managing Corporate Real Estate In Mergers or Acquisitions.

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