A Creative and Challenging Merger/Consolidation
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A group of 46 independently owned commercial real estate-related businesses formed an informal group which met annually for many years to share insights about their respective practices and to review real estate transactions throughout the county. They periodically discussed the notion of finding a way to collaborate and thereby increase their ability to secure large national commercial real estate portfolio engagements. The group enlisted the assistance of Point NorthEast's™ senior strategist to assist in exploring the range of options and possibilities. The initial effort led to the formation of a strategic planning committee composed of a representative group of member businesses.
PNE's senior strategist organized, facilitated and led the development of a plan for launching a new national company. The new entity was initially composed of 21 participating member offices who agreed to a unified identity and business structure, establishment of a series of standard operating procedures and the formation of a corporate office and staff in New York City. Each office acquired a proportional ownership interest in corporate with an incentive to increase their ownership interest during the first two years based upon their success in accelerating gross revenue in their market. The new structure promoted maintaining the benefits of local office control and management while creating a national and expanding business platform. The company's market focus was to promote "providing in-depth local knowledge and expertise while providing national reach and capability."
After a successful launch, the board of directors began implementing and refining its strategic plan to realize the shareholders' vision. Their primary focus was to establish a nationally recognized brand, expand its footprint by increasing the number of offices and exponentially increasing gross revenues and individual profitability of each office. During the first several years, the corporation exceeded its goal of increasing gross revenue by 150% and expanding the number of offices by 250%. The company is now the largest privately held commercial real estate-related company in the U.S.
PNE's senior strategist continues to provide advice, consultation and facilitation to the CEO & president, the board of directors and many of its regional managing directors. In addition to ongoing strategic planning, PNE staff have assisted in guiding and facilitating a series of strategic initiatives.