Mergers, acquisitions, or mayhem. That is the commercial real estate world today in a nutshell. Established brands are coming together, and new brands are growing through acquisition. Middle-of-the-road brands are wondering what their value proposition will be, while boutiques examine exit strategies or a pathway to growth.
When the latest industry announcement is made, there is always a familiar theme: it’s all about the client, providing them with more services and access to a global delivery network.
My good friend and colleague, Randy Cooper, likes to say that the last best effort a broker makes is on the day of the sale. Can the same be said for all these merging or acquiring firms when they make their acquisition announcements? Are they looking to grow in the name of the client? Quite possibly, yes!
When you think about the brokerage industry, the main services you provide to your clients are your expertise and time. During a merger or acquisition, it’s easy for even the best professionals to get sidetracked and distracted. It’s natural human behavior to get swept up in these moments. The way to avoid these possible pitfalls is to focus on the two C’s: consistency and communication:
Consistency: Create and maintain a plan that ensures that services remain consistent and the transition is seamless.
Communication: Keep the lines of communication open so that clients feel comfortable about the changes that lie ahead.
The key in these moments is to do what you do best—what got you to where you are today—and that is about truly focusing on the client. Why is it that so many clients follow brokerage professionals to new firms time and time again? It’s because a personal trust has been established, and that trust is reciprocated. The individual focus is always on the client, and that enables the enterprise. Though the flag, geographic reach and service lines are integral to overall success, that relationship between you and your client ultimately is the glue.
So when you find yourself in a merger or acquisition—and you surely will at some point—make sure to avoid the mayhem. It simply serves no purpose. A merger or acquisition provides an opportunity to take a step back, reassess, and focus on what’s really important.
Frank McCafferty is executive managing director at DTZ. Contact him at [email protected].
