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, requiring many staff. On the one hand, it generated synergies, but on the other, it distracted management from the core business, which was far more strategic and profitable for the group. Ultimately, we advised the client to exit from low-profit contracts and win property management contracts for strategic assets (the biggest in each main city of the country) in order to gain visibility as a key player in the country.
