Portfolio Optimization Strategies to Increase M&A Value

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There are two important portfolio optimization strategies where company leadership can increase M&A value.

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  1. Include real estate in the deal term: The duel diligence phase is one of the most critical stages of any M&A process. This is where the value of the real property assets can be unlocked and drive transaction value for the investor. That’s why it is important to carefully evaluate real estate during the pre-offer and pre-close phases. At this time stakeholders on the buy side can identify synergies, redundancy risks and most importantly, opportunities in the real estate portfolio. Each potential downstream cost savings discovery made during this process can increase acquisition price flexibility and identify potential savings earlier. This helps organizations to identify underlying or unseen value of the M&A candidate.
  2. Identify and quickly act on portfolio opportunities: After the negotiations are over and the deal is announced, quick and effective integration of real estate opportunities identified earlier in the process can save millions. By realizing and acting upon all synergies and cost saving opportunities sooner, organizations can increase their projected ROI. To do this, having good data, processes, tools and expertise to help identify actionable opportunities that drive value is critical to success.

Download JLL’s white paper to learn more about the two “best-kept” secrets to unlocking value in mergers and acquisitions.


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