Case Study

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M&A Product Extension

Background:

Real Estate Service Company with regional operations principally in the Western US and with a Brokerage dominant operating model was looking to expand their capabilities and services, both through product extension and geographical expansion. Following the successful re-capitalization efforts of the firm, the company completed a comprehensive strategic plan; inclusive of market  and product segmentation, client segmentation, and client and employee surveys. The result from the work performed was an agreement to expand services, with the identification of “Financial Services” as a core need and priority of the firm.

Activities Performed:

  • Performed national search of financial service companies that fit the profile of the Firm…”partner centric culture”, national scale, ambitious and entrepreneurial.

  • Identified financial firm that fit profile and initiated discussions... The priority was alignment in the following four (4) key areas:
  1. Business Principles and Corporate Culture
  2. Business Strategies
  3. Financial Modeling and economic alignment 
  4. Integration

  • Initiated due diligence and met with key stakeholders to review and confirm alignment in the four (4) key areas.

  • Following confirmation of the above, began the financial negotiations and established the integration process.
Results:

  •  Identified  alignment  with “partner-firm”

  • Confirmed alignment of all key priorities.

  • Successfully negotiated the financial terms of the acquisition, inclusive of substantial equity to remain with the senior management of the acquired firm.

  • Executed on an integration plan that was prioritized on the following;

        1. Cultural Integration…making sure that each company and its professionals new each other.

        2. Client Integration…sharing and leveraging the client relationships of each firm.

        3. Operational Integration…leveraging and sharing the resources of each firm (efficiency and effectiveness).

  • Following the successful integration of the firm, expanded their financial skills and expertise into a new, “Capital Markets” Integrated Business Service platform designed around the needs of the client.