Merger & Acquisition Real Estate Strategies for Global Companies, Introducing a New Way of Working After the COVID-19 Pandemic

Abstract

This thesis describes and gives an example of a strategy the corporate real estate area of global companies can follow to achieve the required savings in the time needed during a merger or acquisition. This strategy aims to create business cases where each asset involved in the merger will be assigned to a synergy plan. The synergies can be a colocation, space efficiency, benchmarking, closure or no change. The CRE manager will set the synergies depending on the site´s location, size, primary use, and the number of employees. At the end of the site–data analysis, the strategy will give results as possible savings over a period of time, including risk probabilities and approval process flow.

First, the main concepts and background of corporate real estate are studied. Then, the mergers and acquisitions are defined, including their stages, aspects and how managers measure their success. The critical element that combines these two elements (CRE & M&A) is described in chapter four, CRE's role in M&As. The integration planning is where the CRE team develops information to feed the merger results. The CRE managers put together all the needed information through the integration phase, analyse each site, and assign them a synergy strategy. These tasks must be inside the timeline of the holistic integration team (including all areas of both companies). In addition, a detailed approval process has to be on track, starting with internal CRE approval, then the integration team, followed by top management. Then the business cases have to be cascaded into local targets since local businesses (with the support of the CRE team) will be in charge of bringing these strategies into reality.

This thesis uses a desktop case study with thirty-four sites from Finland. It demonstrates that the strategy could achieve the required reporting time savings with the available resources. The outcomes of the method described in this thesis are part of the integration plan. Its execution and success will depend on each company's top and local management that decides how, when and who will apply it. In addition, a deep understanding of the local business from the CRE team is crucial to achieving the promised results for the M&A.