Real Estate Divestiture Post Acquisition

searcher profile

January 06, 2023

by a searcher from University of Pennsylvania - The Wharton School in Los Angeles, CA, USA

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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commentor profile
Reply by an intermediary
from Ryerson University in Toronto, ON, Canada
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.
commentor profile
Reply by a searcher
from Brigham Young University in Kahului, HI, USA
https://www.searchfunder.com/post/interested-in-selling-the-real-estate-underlying-your-business-acquisition
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