Merger & Acquisition Services

The Inside Story on doubling in size through acquisitions — in one year!

In a time of industry consolidation this mid-sized commercial real estate investment trust (REIT) had to grow dramatically and quickly, or become a target for takeover by another REIT.

They decided to grow through acquisition, and negotiated the purchase of a competitor that was twice their size; on top of this, they acquired several properties from yet another REIT. Overnight this company doubled its size ? in revenues, properties under management, and staff.

Because of GLG?s background and experience in REIT mergers, they asked GLG to begin work with them in the pre-contract period and to co-design an engagement that would ensure a successful integration. In their view and ours, this was a critical step in preparation for the monumental changes that were coming.

It was quickly established that the integrations were an opportunity to assess the existing ways of running what had become a very successful business. It became clear that larger versions of their current business processes would be insufficient for a successful integration, or for running a much larger company following the integration. Senior management saw these acquisitions as an opportunity to create a new organization ? one designed to learn and grow at the same time ? an organization with people who were willing to listen and suspend their beliefs that their ways were best, and to learn from the people who came with the acquisitions. In fact, this was a unique opportunity to access their competitors? most successful practices!

GLG designed an integration structure that transcended the existing management hierarchy. Working closely with us, our client established a steering committee and formed integration teams with the authority to make decisions and take action. An important aspect of this structure included having key people from the acquired entities participate on the steering committee and the integration teams, thus allowing them to contribute to design of the new organization. Working side-by-side, existing and new staff generated participation, trust and honest communication right from the start, and a number of very tough issues were addressed quickly and effectively.

In addition to working with the executives and facilitating the integration teams, GLG created and managed a highly effective communications program, which included weekly updates from the integration leader, presentations to the board of directors, talking points for the investment community, and internal documents for executives making key decisions. We conducted training programs to accelerate the development of key managers whose job titles would remain the same, but whose accountabilities would more than double.

One year after the acquisitions were completed, this REIT?s stock is at an all-time high, same store results are up, internal processes have improved, vacancies are filled faster, and they are hitting the numbers — both the analysts? and their own.

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