Fortune 500 Company, acquisition/merger & transition
United States
Following the downturn of the market in 2008, a major Financial Services Company found themselves in a great position to grow market share through the acquisition of another major financial services company.
While the acquisition was swift it came with a large real estate portfolio that would essentially double the size of its existing portfolio.
Financial services companies can have different regulatory agencies with different requirements and rules about how they can physically work. Because the two companies coming together were regulated by two different agencies we had to be very cognizant of those rules when considering how and where to combine offices. Our real estate team had to work closely with risk, technology, accounting and HR teams to ensure we complied at all levels. Beyond needing to be physically separated within the same space, telephone and data systems also needed to be separate until the acquisition was complete and all regulatory requirements for the merger were met.
Key to this very successful merger of companies was a clear project schedule, adhering to and clearly identifying risks to the schedule combined with a strong communication plan. This communication plan allowed all stakeholders clear, convenient and consistent access to where we were in the process throughout the transition. Communication in any transition is key but especially when merging two different cultures – keeping stakeholders apprised of the changes that are happening helps retain talent and minimize business as usual during the transition.
At the beginning of the year we began with approximately 200 offices and by the end of the year, we had successfully merged approximately 40 offices allowing the company to shed excess real estate through lease divestiture or expiration.
“Communication in any transition is key but especially when merging two different cultures – keeping stakeholders apprised of the changes that are happening helps retain talent and minimize interruptions to business as usual during the transition.”
Product Type
Office – ranging in size from
2,000 sf to 30,000 sf
Scope of Services
Merger of 2 companies over
a 1 year period
Client
Fortune 500 Financial Services
Goals and vision
Grow market share
Streamline operations
challenges
Maintain regulatory compliance while merging offices
Successfully transition employees and real estate
Culture integration and employee retention
Streamline operations
Outcomes
Successfully merged 40 offices across the country in one year
Minimized turn over through maintaining consistent, clear communication channels
Significantly reduced real estate portfolio size and cost through strategic office mergers