Real Estate Considerations in M&A and Divestiture Activity
During the extraordinary wave of change that marks a major merger, acquisition, or divestiture, the attention of company leadership naturally turns to thoughts of who will run which business, how to retain customers and cross-sell new products, rationalize the supply chain, fund growth, and retain key personnel. Some questions that arise as part of this process are:
- Where will the company’s major businesses be based?
- How do you leverage physical assets to reduce spend and generate cash through asset sales?
- How does a company geographically position itself for success with customers and suppliers?
- How can you use real estate to integrate potentially disparate cultures and improve employee engagement/productivity?
The true value of the real estate and facilities can be uncovered as companies begin to address these questions.
This issue of Deloitte's Capital and Real Estate Transformation (CRET) Quarterly provides insight into real estate considerations in M&A and divestiture activity. We explore how real estate and facilities can contribute to synergy realization and how M&A or divestiture events can be leveraged to drive value within the real estate and facilities function itself.
In the spirit of the current economic cycle, this issue also includes a “deep-dive” into lease audits. An effective cost reduction opportunity, lease audits also serve as a vehicle to monitor contract compliance. Based on our research, firms that have implemented lease audit programs have experienced significant cost savings, in some cases over $2.00 per square foot across their portfolio of leased space.
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Overview: Real Estate and Strategy & Operations
Services: Performance Management and Real Estate & Location Strategy
Newsletter Archive: Capital and Real Estate Transformation (CRET) Quarterly