There Are Deals To Be Done in 2009
There Are Deals To Be Done in 2009
A bit of background regarding my client's situation...
Presently, she rents office space and was at first wrestling with the idea of renewing her current lease. The problem was that the space does not easily allow for expansion (doomsday projections notwithstanding, she expects to hire more salespeople in 2009) and she was concerned about having to squeeze more bodies into her current office. She was considering a move within her current building as well, when the possibility of a purchase appeared out of the blue.
An acquisition would allow her to expand on her own terms and in her own time frame. So, she asked, "What do I do and where do I start?"
We began by reviewing her current professional advisor circle to see where we needed to bring in extra resources. If, indeed, my client was going to buy a commercial property, with whom should she consult, and how should she bring these professionals up to speed, quickly and efficiently?
Here is the game plan we put together for the next thirty days:
First, she will create a one-page summary and e-mail it to her core team: her lawyer, accountant, banker and insurance advisor. The purpose of this document is to provide an overview of her current lease status (monthly cost, including taxes and operating expenses; size of current space; and projected space needs for the next 3-5 years), as well as the details regarding her other options (with numbers and rationale to support each).
Second, she will put her lawyer and her accountant together in a meeting to thoroughly vet the options; she will have an informational conversation with her insurance advisor regarding the world of commercial insurance these days; and she will have a preliminary discussion with her long-time banker regarding her financial situation.
(Regarding the banker, I urged her not to assume that he would refuse to participate. Tight lending environment or not, there are banks out there with money and intent to lend on good collateral to creditworthy customers... that is why they get up in the morning!)
Third, with encouragement from her core professional team, she will expand the team to include a commercial real estate broker. Not to be confused with the lovely woman who sold my client her house a few years ago, either! A good commercial broker will provide perspective regarding the universe of available choices, narrowing it down to the size, type, cost and location my client wants.
As a result, my client will attain a much better idea of what's available, rather than just settling on the building which sparked this process to begin with. The broker will also act as an advisor, to discuss the pros and cons of key elements to be included or excluded in any offer, as well as serve as a sounding board during the negotiations which will inevitably ensue.
It's too soon in the process to know the end result, but my client now has six months to put the pieces together and decide whether or not this is the right step for her and her growing business. Even more important, she has the confidence to know that as she proceeds, she has the resources and expertise she needs. In other words, she is not alone.
I call that a terrific start to 2009!
There Are Deals To Be Done in 2009 - To learn more about this author, visit Marijo McCarthy's Website.
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A client called me last week, right in the midst of the doom and gloom with which we ended the year, and asked if I could review a purchase and sale agreement for a commercial building. Wonderful, I thought... not only is there a Santa Claus, there are transactions being done in spite of all odds!
A bit of background regarding my client's situation...
Presently, she rents office space and was at first wrestling with the idea of renewing her current lease. The problem was that the space does not easily allow for expansion (doomsday projections notwithstanding, she expects to hire more salespeople in 2009) and she was concerned about having to squeeze more bodies into her current office. She was considering a move within her current building as well, when the possibility of a purchase appeared out of the blue.
An acquisition would allow her to expand on her own terms and in her own time frame. So, she asked, "What do I do and where do I start?"
We began by reviewing her current professional advisor circle to see where we needed to bring in extra resources. If, indeed, my client was going to buy a commercial property, with whom should she consult, and how should she bring these professionals up to speed, quickly and efficiently?
Here is the game plan we put together for the next thirty days:
First, she will create a one-page summary and e-mail it to her core team: her lawyer, accountant, banker and insurance advisor. The purpose of this document is to provide an overview of her current lease status (monthly cost, including taxes and operating expenses; size of current space; and projected space needs for the next 3-5 years), as well as the details regarding her other options (with numbers and rationale to support each).
Second, she will put her lawyer and her accountant together in a meeting to thoroughly vet the options; she will have an informational conversation with her insurance advisor regarding the world of commercial insurance these days; and she will have a preliminary discussion with her long-time banker regarding her financial situation.
(Regarding the banker, I urged her not to assume that he would refuse to participate. Tight lending environment or not, there are banks out there with money and intent to lend on good collateral to creditworthy customers... that is why they get up in the morning!)
Third, with encouragement from her core professional team, she will expand the team to include a commercial real estate broker. Not to be confused with the lovely woman who sold my client her house a few years ago, either! A good commercial broker will provide perspective regarding the universe of available choices, narrowing it down to the size, type, cost and location my client wants.
As a result, my client will attain a much better idea of what's available, rather than just settling on the building which sparked this process to begin with. The broker will also act as an advisor, to discuss the pros and cons of key elements to be included or excluded in any offer, as well as serve as a sounding board during the negotiations which will inevitably ensue.
It's too soon in the process to know the end result, but my client now has six months to put the pieces together and decide whether or not this is the right step for her and her growing business. Even more important, she has the confidence to know that as she proceeds, she has the resources and expertise she needs. In other words, she is not alone.
I call that a terrific start to 2009!
There Are Deals To Be Done in 2009 - To learn more about this author, visit Marijo McCarthy's Website.
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Dianne CramptonDianne Crampton is an executive leadership coach, team culture consultant, author and president of TIGERS Success Series, Inc. Dianne has been helping CEO's and Executives connect their employees to their core values and goals for over 20 years using the trademarked TIGERS team culture process, which stands for trust, interdependence, genuineness, empathy, risk and success. To download a free white paper on behaviors that build strong teams and behaviors that will predictably tear them down go here. Dianne's contribution to the 2010 Pfeiffer Consulting Journal (an imprint of John Wiley and Sons Publishers) entitled TIGERS Hearted Teams is available in November 2009. Her new book TIGERS Among Us: 5 Winning Business Team Cultures And Why, Three Creeks Publishing will release in March 2010. To receive publishing discounts, subscribe to the free TigerTracks Newsletter here. - Visit Dianne Crampton's Website |
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