Real Estate Portfolio Management

When companies find themselves managing multiple commercial or Residential and technical facilities, several problems can arise, both during the initial setup process and thereafter. These include:

• Increased inventory and administration demands
• Inefficient processes that cause delays or bottlenecks as the real estate portfolio increases
• Service comparison and cost control concerns
• Inadequate communication

Although widely examined and discussed, structural and strategic optimization remains complex for companies of all sizes. As the success of just about any project relies heavily on solid structures and sound strategies, even the most experienced team of executives will seek external perspectives to get it right.

Even though, problems caused by poor management decisions can be difficult to resolve, structural and strategic consulting is paramount in order to achieve transparency and to control the outcomes of such decisions.

Typical obstacles encountered in the development of structure and strategy includes:

• Unnecessary complexity: work processes that require a surplus of time and effort to achieve
• Excessive optimism: failure to recognize, classify and mitigate risks or run-on effects
• Structural inconsistencies
• Lacking transparency
• Ambiguity in decision-making procedures

Project Management

Large-scale organizations manage multiple departmental projects simultaneously. Confusion arises when discoveries vary wildly between departments on similar issues. Effective coordination of interdepartmental projects ensures that quality standards remain high, time is optimized appropriately and all budgets remain under control.

Classic concerns arising from project management include:

• Ambiguous project specifications
• Insufficient flexibility with cost estimates pertaining to changes in the scope of a project
• Insufficient risk classification and mitigation (including the possibility of failure and cessation
• Lack of transparency and inadequate communication with management
• Outsourced components mean that companies lose access to valuable knowledge once the project ends.

Benchmarking and Recommendations

Asset / Share deal transaction for both residential and commercial deals have extremely complex structures that require expertise to comprehend. Leasing and facility agreements are updated on a regular basis and frequently presented as cost-saving measures, though they can often be deceivingly expensive. MMG Europe has the expertise and experience to analyze your deals and workload distribution requirements in great detail. We can simulate several scenarios in which your workloads are redistributed in an optimal way, providing detailed budget information for each and every outcome, and then arriving at a genuinely cost-optimized solution that saves you money, time and hassle.

Furthermore, we benchmark your service charge cost against the existing lease agreements aiming to reduce your non recoverable cost.  We determine your ancillary cost during your due diligence and can present a detailed cost forecast which very often generates value added to your ROI. Through comprehensive analysis, MMG Europe ensures that the recommended transaction conditions are favorable.

Optimizing intern structure and cost assignment processes

Corporations are made up of multiple specialized service units, among them Acquisition, IT, Operation, investment and finance. Once the right deal has landed on the table, all teams must work in perfect synergy so that all data can bring the board to a decision to proceed with the deal or not.

MMG Europe team, with over 20 years of experience, offers a four-pronged approach to optimizing your intern structure and cost assignment processes:

• Detailed analysis of all data provided by the seller
• Identification of factors driving costs
• Determination of target pricing
• Precise and transparent Due diligence plan incl Pro & Cons among all aspects (Tax, Legal, Finance and Operation.

Once your optimized in-house structure and assignment systems are in place, we will also help you communicate these positive changes to management and the relevant in-house service departments.

Financial Process Development

In any organization, the financial department holds an enormous amount of responsibility and often takes the fall in the case of an unfavorable project outcome. Finance departments handle reporting, authorizations and approvals and manage complex budgets. In all of these process areas, they take full responsibility for the preparation, consolidation, storage and delivery of valuable financial data. When this data is ambiguous or poorly presented, company executives are ill-prepared to make important decisions.

A well-oiled financial department has smooth and streamlined processes and clearly-defined accountability. When problems arise, these processes ensure that management knows exactly where to apply a fix.

Mergers and acquisitions are exciting and sometimes disruptive events in a company’s history, and should be handled with care. Shareholder expectations and organizational obstacles are immense. A company’s purchasing department is largely responsible for many of these challenges. Common scenarios include:

• No involvement by the purchasing department in the early stages of negotiation
• Limited access to contract databases following M&A transactions
• Unclear impact of a merger or acquisition on existing agreement conditions
• Insufficient information about quantity changes and the effect on prices
• Necessity for extensive contract analysis to assess impact, which can be prohibitively expensive
• Miscalculations or an inaccurate representation of synergy potential that arises from M&A negotiations conducted under time pressure
• Purchasing department forced to assume responsibility for the fulfilment of unattainable targets
• Interdepartmental communication is hindered by uncertainty
• Dissatisfied or disgruntled employees