The M&A Explosion and Real Estate
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Real estate costs can be up to 10% ofcompany revenues, Henley writes.
JACKSONVILLE, FL—Across the globe, mergers and acquisitions are on fire—in fact, the Wall Street Journal reports that activity is on pace this year to hit the highest level on record, even greater than the boom year of 2007. Additionally, the strong economy has led to rampant company growth in many sectors. And with that, there are many challenges that come with mergers, acquisitions and growth, particularly on the real estate side.
“For instance, a company may end up with excess space, discover redundancy in a certain market or have assets that don’t fit in with its strategic vision,” says Scott Henley, SVP of global corporate services with Newmark Grubb Phoenix Realty’s office in Jacksonville, FL. “What it ultimately chooses to do with these properties will have a significant impact on its bottom line.”…
