Real Estate Divestiture Post Acquisition

by a searcher from University of Pennsylvania - The Wharton School

1 year ago

Does anyone have experience with selling off real estate assets that came with an acquisition?

I'm interested in use cases, rationale for sale, pros/cons, approaches, etc..

Appreciate any inputs and happy to hop on a quick call to discuss!

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searcher from McGill University

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3 months ago | like reply | 0 likes

intermediary from Ryerson University - Ted Rogers School of Management

Just a general rule of thumb to consider, if the business is considered asset-heavy where a lot of CAPEX has gone into the facility/equipment and is therefore difficult to move from the current location, controlling your destiny by owning the real estate is always better in the long-term as you dont want to be in a position where the long-term viability of any investment involves a 3rd party landlord. There are certain strategic buyers in asset heavy industries that will not look at buying businesses where their property is owned by a 3rd party and does not have an option to buy the property. This is a less relevant issue for businesses that are asset-lite, can be easily moved.

1 year ago | like reply | 0 likes

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