Mon, Sep 15, 2014

REIT Roll-up Transactions: How Much is Your Manager Worth?

In REIT roll-up transactions, the value of contributed real estate assets is generally understood, as investors are usually comfortable with the well-established methodologies underlying real estate appraisals. The value of the management company is less straightforward, however, and often becomes an area of inordinate focus in roll-up transactions. So why is the management company a source of value, and how is that value best determined?

This article explores management company valuations from the following perspectives:

  • Why it is important to convert to internal management prior to a REIT going public;
  • The reasons why a manager has value in a roll-up;
  • Historical trends regarding management company valuations in REIT roll-up and internalization transactions;
  • The use of a discounted cash flow analysis to value management companies; and,
  • Factors that impact the values of management companies.
REIT Roll-up Transactions: How Much is Your Manager Worth? /en/insights/publications/transaction-opinions/reit-roll-up-transactions-how-much-is-your-manager-worth 2014-09-15T04:00:00.0000000 publication {CC4AA7F7-C91B-4C23-A8A9-F85252244AAE}{9763680C-5D58-4FFD-A93E-9C2B56959D4F}{35FC315C-2B63-4F1C-853A-9D7CD9B0039D}{CA601B88-1E91-4803-A6A4-ECC35D220DCC}

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