Unlock the value of real estate at every deal stage

M&A Deal Stages

1. Preparing for M&A

   How to prepare for M&A and gain a holistic view of your portfolio. Learn More

2. Due Diligence

   Uncover risk and liability and create a roadmap for the future. Learn More

3. Transition

   Accelerate transformation and minimize disruption. Learn More

4. Integration

   Optimize operations, integrate culture and manage change. Learn More

Five steps to prepare your CRE organization for M&A

1. Preparing due diligence checklists

   Outlining questions in smaller sets creates a more focused, manageable view and allows for simpler internal reviews, which will reduce duplication across functions and drive a top-down understanding of the data being collected and its impact.

2. Organize your CRE information

   Create a complete view of available portfolio data and where it’s stored to allow for more efficient access to key information. Ensuring databases stay current will enable the CRE team to provide valuable insights when there is an urgent need.

3. Build a knowledge network with internal partners

   Having a strong understanding of partners and available support across business functions will be valuable in preparation for M&A. HR, legal, risk, insurance, procurement, finance, IT, security, health and safety, sustainability, and security will all play an important role in the process.

4. Organize the team within CRE

   A cross-functional, cross-geography CRE team will create consistency across the business, in-depth portfolio insights, and can unlock opportunities for cost savings and optimization. Define key stakeholders who will drive forward major milestones and expectations.

5. Agree on major milestones or expectations

   While a detailed timeline will not be available ahead of the announcement of M&A activity, work to establish theoretical expectations for what will be achieved within the first 90 days, six months, one year, and beyond to support a more precise outlook with better alignment across the business.

1. Assessments, portfolio analysis, and high-level portfolio optimization plan

   Collecting accurate, holistic data will provide clearer insights into the benefits of the merger. CRE teams will often have access to this critical data, as well as boots on the ground in facilities, to support more precise evaluations. Through deep portfolio analyses, CRE engagement at this stage can eliminate guesswork and prevent issues that can arise from data discrepancies later in the process.

2. Risk Assessments

   Risk assessments are a critical step in determining which assets are best suited for the merged portfolio, while working to balance uncertainties and opportunities for growth. These assessments provide an opportunity to safeguard against threats.
   

Key considerations

1. Match supply and demand

   To establish market-level plans, take inventory of the supply of real estate and match it with the demand needs of each go-forward business unit. This is a key step for any asset type – retail, industrial, office, and others.

2. Organization design

   Determine the organizational design that will best serve the needs of the go-forward organization. This includes understanding both the capabilities and maturity of the team being acquired as well as potential points of overlap.

3. Draft an initial project charter/summary

   Identify, even with preliminary information, the major sites that will be priorities and what the associated timing is. Be sure to consider potential risks and the most important deal value drivers that need to be delivered. 

Key activities

1. Portfolio-level planning; site-level validation

   Validating the assumptions made in the due diligence phase at the market level is a key first step in the transition stage. The M&A team should leverage local market expertise for brokerage, projects, and facilities, to analyze the costs that will be necessary to achieve the established outcomes.

2. Organization structure and operating model

   This is the time to assess both organizations and determine what structure and operating model to implement for integration. This could include outsourcing, reevaluating the supply chain and suppliers, and assessing processes. When merging companies are aiming to operate as a single unit, there will be a need to re-engineer existing processes to create alignment across the legacy organizations. 

3. Evaluating the tech stack

   Collecting information about the technology stack across all real estate functions at both companies provides a foundation for building a unified technology roadmap. Well-executed assessments will deliver a holistic view of the portfolios’ current state at every stage of the real estate lifecycle and should include dashboards with organization-wide reporting, as well as a schedule for migrations.

Best practices

1. Set up a PMO

   Forming a PMO is essential for navigating M&A. The team will serve as a catchall for the regulation of all transition activities including strategy, technology, and analytics.

2. Establish a process for communicating all merger-related requests and a system for logging the details

   Cataloging responses creates a record of everything that is submitted and makes it searchable. If asked the same question multiple times, there will be a record of the response, preventing any potential contradicting information. 

3. Establish a governance process

   All requests should go through the PMO, even something as simple as the square footage of a single property. The team can assign each request to the right people as needed and still maintain both process consistency and thorough records.

Key activities

1. Stand up a transition team for site integration

   Working with the PMO, the transition team will establish a governance process for getting through the merger and will manage the status of all activities. The team will focus on facility-related transition activities, establish recurring checkpoints for each project or transaction, and manage changes to vendor relationships and technology.

2. Establish communication and tracking methods to ensure progress against the plan

   Communication plans should be comprehensive, extending to site-level staff and how their day-to-day might be impacted. Transparency is critical for maintaining morale and mitigating the risk of attrition.