Business case
Our client, a major European real estate asset manager, sought an assessment as to whether its third-party business (property management services on behalf of third parties) should be developed or exited.
Even though the third-party business generated a positive EBITDA margin, it was a non-core business for the group. On the one hand, it generated synergies; on the other, it distracted Management from the core business, which was far more strategic and profitable. Ultimately, we advised the client to exit from low-profit contracts and to win property management contracts for strategic assets (the largest in each main city of the country) in order to gain visibility as a key player in the country.
Our engagement was divided into three parts: (i) establishing a carved-out P&L of the third-party property management activity; (ii) reviewing the market opportunities on property management on behalf of third parties; and (iii) listing the different possible strategic options.