Strategic Advisory & Consulting
Mergers & Acquisitions
Unlocking value and mitigating risks associated with real estate within M&A.
M&A and your real estate portfolio
Merger, acquisition (M&A) and divestment activity is growing and is forecast to accelerate. In a recent CBRE survey we found that over 40% of our corporate clients anticipate M&A / divestment activity within the next 12 to 18 months.
Research shows that 80% of M&A initiatives fail to achieve the intended benefits. We can partner with you so that real estate is not a contributing factor.
Now is the time to assess how ready you are to maximise the role of real estate in delivering a successful M&A.
The opportunity within M&A
Real estate often comprises a significant proportion of corporate balance sheets and therefore represents both a risk and opportunity to businesses undergoing M&A activity. Not only this, it also plays a key role in integration and defining the future culture of your business, whilst also having the potential to cause business disruption during the M&A or divestment process. Real estate however is often considered too late in the M&A process. By accessing comprehensive advice early in the M&A lifecycle, you can unlock opportunities that will accelerate integration or separation, mitigate risk and create value as well as reduce costs.
CBRE’s Insights
We have been conducting research over the last 18 months reaching over 50 of our clients with global portfolios to determine the main targets and challenges they are facing.
Key topics identified by our clients
Main targets given to real estate teams during M&A / Divestment activity
Main challenges faced when undergoing M&A / Divestment activity
Some questions for Real Estate teams to consider in the early stages of an M&A
The earlier you can involve yourself in pre-deal due diligence, the more empowered real estate will be to help proactively shape solutions to these problems, rather than react when it’s too late.
- Do you know the value and risks associated with incoming / divested real estate assets, business processes, operating models and organisational structures?
- Do you have market-tested actionable real estate savings targets?
- Do you have enough capacity within your real estate team to deliver M&A targets whilst maintaining BAU excellence?
- Do you have a clear view of the role real estate will play in enabling integration / separation – cultural, business and financial?
- Do you have clear access to incoming data sets?
- Are you managing de-centralised functions and businesses?
How CBRE can help you
Unlock OpportunityCan create over 20x value to fee annual real estate cost savings which has a much larger impact on deal value due to purchase price multiples |
Identify Market Actionable StrategiesWe make sure your strategy is market validated and actionable based on local market expertise |
Mitigate Risk & Alleviate BAU Impact
We offer a single point of contact with an end-to-end process from strategy through to delivery |
Our Approach
- Data collection, review & gap analysis
- Data ‘clean room’ created and data integrity framework initiated
- Relevant data assumptions and modelling parameters agreed
- Engage with all key stakeholders to help form guiding principles
- Strategy criteria weighing up financials, ESG, talent, workplace, digital and business considerations
- Portfolio modelling to identify synergy opportunities and site/business autonomy requirements, dependent on strategy criteria
- Local market engagement
- Deep dive cost modelling
- Continued stakeholder engagement
- Strategic programme management
- Market delivery such as site search, shortlisting, building due diligence
- Project delivery such as change management, design standards and works
Why CBRE?
Real estate represents a significant cost and risk for businesses undergoing M&A / divestment activity. We hold the most diverse team structure, most significant geographic reach and largest consulting team to deliver market actionable real estate strategies – covering the complete M&A lifecycle from ideation to implementation.
Take advantage of our extensive experience of delivering at every stage of the M&A lifecycle.
M&A snapshots
Curious to know what’s happening with M&A in the Technology, Media and Telecoms sector? Doug Jones from our TMT Occupier Accounts team considers the current market.
Our clients are seeing consistent challenges when heading into an M&A. Mitigating risk and minimising cost is common as well as being able to use their real estate to accelerate integration.
Did you know that for every pound of cost we identify as a saving, we typically see more than 10x multiplier of value to clients?
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Contacts
Marco Mestre
Director, Head of Strategic Programme Management
