Private Equity Advisory Group_BROCHURE
PRIVATE EQUITY ADVISORY GROUP
REIMAGINING THE WORKPLACE OF THE FUTURE
TOC
PG. 4 / OUR PRE-ACQUISITION DUE DILIGENCE
PG. 6 / OUR POST-ACQUISITION PROCESS
• DEFINE OBJECTIVES
• ANALYZE OPPORTUNITIES
• IMPLEMENTATION
PG. 18 / COVID-19 RESPONSE
PG. 20 / EXPERIENCE
PG. 22 / OUR TEAM
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OUR PRE- ACQUISITION DUE DILIGENCE Cushman & Wakefield’s pre- acquisition process creates a better understanding of the key operational drivers (employee retention, cost savings, strategic initiatives, contract requirements) to avoid landmines and create an actionable game plan on day 1.
STEP 01
INTEGRATION WITH DEAL TEAM Legal Finance / Accounting Third Party Consultants IT Operations
INFORMED Investment Decisions With Underwritable Cost Savings
POTENTIAL Material Negotiation Levers for Business Purchase (i.e. Avoid Landmines)
ENSU Smooth Exit From Paren
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STEP 03
PORTFOLIO ANALYSIS Lease Abstraction (Identify critical dates and options) Market Analysis Occupancy Analysis
SYNERGY, CONSOLIDATION, AND DISPOSITION ANALYSIS
STEP 02
URES t/Transition nt Company
IMPROVED Understanding of Operational Drivers
DAY 1 Game Plan
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OUR POST ACQUISITION PROCESS
Cushman & Wakefield will implement a 3-step real estate process with the private equity firm and portfolio company on defining objectives, analyzing opportunities, and implementing the overall strategy. The primary focus will be to have full alignment with all stakeholders around the business objectives and real estate strategy all while driving down costs and expanding margins .
DEFINE OBJECTIVES
1
DEFINE BASELINE AND IDENTIFY BUSINESS DRIVERS • Analyze and aggregate all portfolio data to compare key occupancy and cost metrics. • Determine portfolio companies objectives and drivers.
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ANALYZE OPPORTUNITIES
IMPLEMENTATION
2
3
OPTIMIZE THE LABOR POSITIONING Do the labor markets where the portfolio company operates align and support its ability to access and retain target talent? ALIGN THE PORTFOLIO OPERATING FOOTPRINT How can the portfolio company most effectively align its footprint to drive efficiency, control costs and support the business? REIMAGINE WORKPLACE How can the portfolio company transform its workplace to provide flexibility, enhance employee experience and better align with business?
IDENTIFY THE OPTIMAL STRATEGY Develop scenarios and business case to support the portfolio company’s internal decision-making DEVELOP CHANGE MANAGEMENT STRATEGY ACTION PLAN Develop implementation and change management plan & toolkit
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PHASE 1 DEFINE OBJECTIVES
PORTFOLIO DIAGNOSTIC
PORTFOLIO OVERVIEW VIA TRIANA
Analyze and summarize portfolio data to compare key metrics including: 9 Occupancy costs 9 Owned vs. Leased 9 Lease expirations 9 Space Utilization and areas of excess capacity
Cushman & Wakefield will utilize our TRIANA dashboard to review the current real estate portfolio and define a baseline for a strategy moving forward. TRIANA is Cushman portal for enhanced business intelligence and critical insight for real estate portfolios. This tool provides all stakeholders a one-stop-shop to review key real estate, financial, and occupancy metrics for their portfolio companies. Wakefield’s proprietary online data visualization
9 High level labor assessment 9 Monetization opportunities
9 Highlight areas which have greatest opportunity to drive near term savings
9 Provide directional estimate for savings
PROACTIVITY SCORE
Measured on lease flexibility, cost and utilization metrics Identifies properties that have opportunities and risks through statistical analysis Compares property data with portfolio metrics and C&W benchmarks
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FORECASTED CASHFLOWS
PRESCRIPTIVE STRATEGIES
SCENARIO PLANNING
Compare contractual rents with current and forecasted market rents
Easy to use matrix provides directional guidance for transaction strategies based on market rate forecasts
Ability to view portfolio and building impact caused by headcount growth, utilization changes and market rents Instant sensitivity analysis to drive portfolio strategy
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PHASE 2 ANALYZE OPPORTUNITIES
LOCATION
Where does the target workforce live and work?
LABOR STRATEGY
Cushman & Wakefield will assess if the labor markets where the portfolio company currently operates support its ability to access and retain the appropriate talent at reasonable costs . We will provide the portfolio company with detailed and actionable insights in the local labor markets. Finally, we will use our labor analytics capabilities to ensure real estate decisions are aligned with long term talent objectives.
COMPETITION
Who is competing for the targeted skillsets?
WAGE LEVELS
How are wages trending and does the portfolio company’s pay structure affect its ability to recruit and capture the right talent?
COST SAVINGS
SAVIN BENCH
Operations
5-20%
Labor
20-30%
SAMPLE LABOR MARKET ANALYSIS
90.00%
Up and Coming
Active
80.00%
San Francisco
70.00%
Austin
60.00%
Denver
TARGET ZONE
Seattle
50.00%
Salt Lake City
Nashville
40.00%
Atlanta
Historical Job Skills Growth
U.S. = 31%
30.00%
Boston
Miami
Chicago
20.00%
Los Angeles
New York
Mature
Off Radar
10.00%
0.5
1.5
2.5
Employment Concentration
NGS
SAMPLE OPPORTUNITIES
SAMPLE RISKS
HMARK
Ability to renegotiate contracts and maximize purchasing power
Limited
Relocation to low cost labor market with favorable conditions
%
Potential loss of institutional knowledge
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PHASE 2 ANALYZE OPPORTUNITIES
CLIENT LOCATIONS
REAL ESTATE PORTFOLIO STRATEGY
Cushman & Wakefield will evaluate the portfolio companies real estate footprint to identify opportunities to improve efficiency, reduce costs and better support the business . This will provide location-level recommendation for Maintain, Downsize, Consolidate/Exit, or Re-Evaluate.
SAMPLE PORTFOLIO RECOMMENDATIO
MAINTAIN
Denver
Fort Worth
Las Vegas Memphis Baltimore
Boul
Los Angeles
Columbus
Bost
Chicago Houston
Charlotte
Nashv Portla
San Fran
Tucson Atlanta
Philadelphia San Antonio
Seattle
Oma Rale
Denver 2
Kansas City
COST SAVINGS
SAVIN BENCH
Surplus Property Dispositioning
5-18%
Markets Renegotiations
10-20%
Financial Restructuring
Cash G
Occupancy Planning
20-30%
Capital Budgeting
$100 M
Logistics
5-15%
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PORTFOLIO RECOMMENDATIONS
ONS
CONSOLIDATE AND/OR EXIT
DOWNSIZE
RE-EVALUATE
lder
Miami
Saint Paul Pittsburgh Plano Orlando
Durham
Irving
ton
Tulsa
Madison
Boise
ville
Tampa
Reno
Modesto
LEGEND (BY OFFICE CLASSIFICATION)
and
New Orleans
Buffalo
Salt Lake City
Type 1 Type 2 Type 3 Type 4
Cleveland
Fremont
Little Rock
aha eigh
Aurora
Tempe
NGS
SAMPLE OPPORTUNITIES
SAMPLE RISKS
HMARK
Opportunity to dispose of excess land and building assets 20K SF office lease below market, blend and extend
Market timing/capital gains
20-year leases in France give limited flexibility Potential long-term strategic considerations Need to understand business drivers for each location
%
Generation
Sale-leaseback of several owned sites
%
Consolidation of facilities in Chicago metro
Identified funds for projects which can be eliminated
Aging assets and require capital investment
MM+
Inbound freight rates currently above market
Limited
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PHASE 2 ANALYZE OPPORTUNITIES
SAMPLE WORKPLACE STRATEGY ANALY
2,415 HEADCOUNT
WORKPLACE STRATEGY
WORKING FROM WORKING FROM WORKING FROM
Cushman & Wakefield will conduct series of workplace diagnostics to assist the portfolio company in understanding the type of space, amount of space, and the workplace technologies needed to create its workplace of the future .
604 25% of workforce 1,208 50% of workforce 1,811 75% of workforce
604 25% of workforce 362 15% of workforce 242 10% of workforce
1,208 50% of workforce 845 35% of workforce 362 15% of workforce
Percentage of Workforce Working Remotely
COST SAVINGS
SAVIN BENCH
Lease Audits
2-5% O
Real Estate Tax Assessments
2-12%
Underutilized Space Strategies
10-20%
Workplace Strategy
10-50%
Project Management
8-12%
Quality
N/A
LYSIS
SCENARIO 1 180 SF PER EMPLOYEE
SCENARIO 2 180 SF PER EMPLOYEE
4 3
3 2
Office Seats (Drop-in)
Office Seats (Shared)
Total Seats Required
Space Required
Office Seats (Shared)
Total Seats Required
Space Required
60
906
1,570
282,555 SF
805
1,469
264,443 SF
36
634
1,878
337,979 SF
564
1,807
325,301 SF
24
272
2,198
395,577 SF
242
2,077
373,842 SF
People to Desk Ratios for Remote Workers Sharing Desks
NGS
SAMPLE OPPORTUNITIES
SAMPLE RISKS
HMARK
Inappropriate charges from landlord, expense cap and prorate calculation errors
OPEX Spend
Landlord relations if done poorly
Real estate taxes based on inflated value
Limited
%
Closure of underutilized office, consolidate
Attrition: employee commute disruptions
%
Ability to densify and reduce space
Cultural implications from densification
Services and construction
Cost and schedule
Underutilized facilities are Class A, high sublease potential
Space is in poor condition, requires investment
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Americas iDesk
PHASE 3 IMPLEMENTATION
Cushman & Wakefield will work with all stakeholders to identify the optimal strategy through portfolio and workplace scenario planning and measuring financial and non-economic impacts. C&W’s Tenant Advisory Group (TAG) will plan, implement , and execute the transactions and other activities to align real estate to support business.
Offices in 60 Countries 400 Offices in 70 Countries
Cushman & Wakefield’s International Desk (iDesk) centralizes and streamlines our ability to quickly identify the appropriate resources to delivery our clients consistent services across all geographies. iDesk
Cushman & Wakefield Offices
AMERICAS UNITED STATES ALABAMA Birmingham Fairhope ARIZONA Phoenix Southern Arizona Tempe ARKANSAS Little Rock Northwest Arkansas CALIFORNIA Bakersfield Burlingame Carlsbad Diamond Bar El Segundo Fresno Irvine Larkspur Long Beach Los Angeles Monterey Oakland Orange County Ontario Otay Mesa Palo Alto Pleasanton Roseville Sacramento Salinas San Diego San Francisco San Jose Stockton Thousand Oaks Walnut Creek COLORADO Colorado Springs Denver
MASSACHUSETTS Boston
NORTH CAROLINA Charlotte Raleigh-Durham OHIO Cincinnati Cleveland Columbus OKLAHOMA Oklahoma City Tulsa OREGON Portland PENNSYLVANIA
Hartford Stamford DISTRICT OF COLUMBIA Washington DELAWARE Wilmington FLORIDA Boca Raton Fort Lauderdale Fort Myers Jacksonville Miami Naples Orlando Stuart Tampa West Palm Beach GEORGIA Atlanta Savannah HAWAII Honolulu Kauai
Alexandria Arlington
Chelsea Newton MICHIGAN East Lansing Southfield MINNESOTA Minneapolis MISSISSIPPI Jackson MISSOURI Clayton Kansas City St. Louis NEBRASKA Omaha NEVADA Las Vegas
Charlottesville Fredericksburg Lynchburg Mclean Newport News Richmond Roanoke Tysons Corner Virginia Beach WASHINGTON Bellevue Seattle WISCONSIN Milwaukee CANADA ALBERTA Calgary Edmonton BRITISH COLUMBIA Burnaby Vancouver Victoria MANITOBA Winnipeg NEW BRUNSWICK Fredericton Moncton Saint John NEWFOUNDLAND St. John’s NOVA SCOTIA Halifax ONTARIO
TAG
Cushman & Wakefield’s Tenant Advisory Group (TAG) consists of the 200 leading brokers from each market that focus exclusively on representing occupiers across all types of real estate. The primary mission of TAG is to strengthen C&W’s ability to provide clients with the highest level of expertise, service, collaboration, and best practices. Allentown Bensalem Conshohocken Harrisburg Philadelphia Pittsburgh Scranton RHODE ISLAND Providence SOUTH CAROLINA Charleston Columbia Greenville TENNESSEE Brentwood
Reno NEW
HAMPSHIRE Manchester NEW JERSEY Bloomfield Cherry Hill East Rutherford Iselin Morristown Mount Laurel NEW YORK Albany Binghamton Brooklyn Buffalo Corning Forest Hills Islandia Ithaca
Waikiki IDAHO Boise ILLINOIS Chicago
Rosemont INDIANA Indianapolis IOWA Des Moines KANSAS Overland Park Wichita KENTUCKY Louisville MAINE
Memphis Nashville TEXAS Arlington
Austin Dallas El Paso Houston Irving Pearland San Antonio
Kingston Kitchener London Markham
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New York Newburgh
EMEA iDesk
Japan iDesk
India iDesk
China iDesk
APAC iDesk
LATAM iDesk
14 PROFESSIONALS GLOBALLY PLAY AN IDESK ROLE
DEMOCRATIC REPUBLIC OF CONGO Kinshasa DENMARK Copenhagen FINLAND Helsinki
LESOTHO Maseru LUXEMBOURG Luxembourg MACEDONIA Skopje MONTENEGRO Herceg Novi NAMIBIA Windhoek NETHERLANDS Amsterdam Arnhem 100,275 1 1
RUSSIA Moscow SAUDI ARABIA Riyadh SERBIA Belgrade Novi Sad SLOVAKIA Bratislava SOUTH AFRICA Bloemfontein Cape Town Durban East London Edenvale Empangeni Johannesburg Kimberley Mthatha Nelspruit Pietermaritzburg Polokwane Port Elizabeth Pretoria Randburg LOCATION 2 RELOCATION 100,275 24,075 4 3.6 1 $25,630,414 $2,866,667 $31.43 N/A Richards Bay Shelley Beach St Lucia SPAIN Barcelona Madrid SWAZILAND Mbanana SWEDEN Gothenburg Malmo Norrköping Stockholm SWITZERLAND Basel Geneva
TURKEY Istanbul UKRAINE Kyiv UNITED ARAB EMIRATES Dubai UNITED KINGDOM Belfast Birmingham Bristol Cardiff Edinburgh Glasgow Leeds London Manchester Newcastle Thames Valley ZAMBIA Lusaka ZIMBABWE Harare APAC AUSTRALIA LOCATION 3 RELOCATION 100,275 87,669 21,035 5 4.2 1 $32,000,327 $9,236,580 $51,640,600 $45,454,732 $45.15 N/A N/A $28,301,292 $5,537,545
INDONESIA Jakarta JAPAN Tokyo
Montreal Saint Laurent SASKATCHEWAN Regina Saskatoon LATIN AMERICA BRAZIL Barueri Belo Horizonte Porto Alegre Rio De Janeiro São Paulo Salvador CHILE Santiago COLOMBIA Bogota COSTA RICA San Jose MEXICO Cuidad Juarez Guadalajara Mexico City San Pedro Garza Zapopan PERU Lima PUERTO RICO San Juan EMEA BAHRAIN Manama BELGIUM Brussels Liege BOTSWANA Gaborone BULGARIA ARGENTINA Buenos Aires
SAMPLE OPTIMAL STRATEGY ANALYSIS
REPUBLIC OF KOREA Seoul MALAYSIA Kuala Lumpur NEW ZEALAND Auckland Christchurch Hamilton Wellington PHILIPPINES Manila SINGAPORE Singapore THAILAND Bangkok VIETNAM Ho Chi Minh City GREATER CHINA Beijing 24,000 2 - 4.5 2 $2.1M
LOCATION 1 RELOCATION
BIFURCATION (PRIMARY + LOCATION 1)
REMAIN AT EXISTING LOCATION
REFRESH INTERIOR 166 SF/PERSON
NO RENOVATIONS (66 SF/PERSON
175 SF/PERSON 153 SF/PERSON 175 SF/PERSON 153 SF/PERSON 175 SF/PERSON 153 SF/PERSON 175 SF/PERSON 153 SF/PERSON
FRANCE Bordeaux Dijon Lyon Marseille Montpellier Nice Nimes Paris Reims Rennes Strasbourg Toulouse GEORGIA Tbilisi GERMANY Berlin Düsseldorf Frankfurt Hamburg Munich GHANA Accra GREECE Athens HUNGARY Budapest
OVERVIEW
Rentable SF
95,063 23,766
87,669
87,669
82,245 + 17,850 72,063 + 15,606
Floor Plate Size SF
120,000
# of Floors
4
2 - 5
# of Buildings
1
FINANCIAL IMPACT Net Present Value NPV Delta from Base Case
Den Haag Eindhoven Enschede Groningen Rotterdam Utrecht Zwolle NIGERIA Lagos NORWAY Oslo POLAND Gdansk Katowice Krakow Lodz Lublin
$19,324,273
$22,753,747
$27,859,981 $5,096,234 $44,321,303
$24,681,446
$22,732,168
4.1% - 6.9% less 3.7% - 6.5% less $1.8M - $7.0M ($0.9M) - $3.7M 4.3% - 7.4% less 4.7% - 7.7% less
N/A
N/A
$1,917,699
($31,579)
Total Cost
$33,445,266
$37,607,030
$39,055,575
$39,751,830 $35,060,055
# of Buildings
$34.75
$37.61
$20.32 + Base Rent / SF
Redeployment Costs
N/A
N/A
N/A
N/A
N/A
$2.1M
TALENT STRATEGY Impact to Employee Commutes Distance to Public Transit
Access to Target Demographics (driving) Access to Target Demographics (transit)
Ability to Evolve Workspace Distance to Local Amenities
BUSINESS OPERATIONS Access to Customers Abilities to Accommodate Adjacencies Optionality Level of Disruption
Changsha Chengdu Chongqing Dalian Guangzhou Hangzhou Hong Kong Nanjing Nanning Qingdao Shanghai Shenyang Shenzhen
Adelaide Brisbane Canberra Darwin
INFRASTRUCTURE Floor Plate Size Parking Ratio Branding Opportunities Architectural Landlord Quality
Gold Coast Melbourne Perth Sydney GUAM Tumon INDIA Ahmedabad Bengaluru Chennai Gurugram
Poznań Warsaw Wroclaw PORTUGAL Lisbon QATAR Doha REPUBLIC OF IRELAND Cork
FAVORABILITY
High Middle Low
ISRAEL Tel Aviv ITALY Milan Rome
Tianjin Taiwan Wuhan Xi’an
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COVID-19 RESPONSE
RESPOND
C&W has been the industry leader on our response to Covid-19. We are providing our client with clear action plans during each phase of the pandemic: RESPOND REOPEN, & REIMAGINE.
COVID-19 Lease Abstracts & Review
Rent Relief
Financial Analysis
Virtual Market Site Tours & Leasing
Experience per Sq. Ft. (XSF) at Home
Facility Cost Containment
CLICK BELOW TO LEARN MORE
RECOVERY READINESS GUIDE
XSF@HOME EMPLOYEE SURVEYS THE FUTURE OF WORKPLACE
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REOPEN
REIMAGINE
Facilities Management, Health & Safety in a New Business as Usual Environment
Health Safety Security & Environment (HSSE) Assessments & Best Practices
Space Planning for Social Distancing: 6 Feet Office
Change Management
Workplace Strategy
Project & Program Management to Modify Workspaces
Portfolio & Location Strategy
Enhanced Cleaning Protocols & Procurement of Critical Supplies
Technology Assessment & Enablement
Ongoing Employee Engagement l XSF
SAFE SIX ESSENTIALS
6 FEET OFFICE
THOUGHT LEADERSHIP
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PRO VEN SUC CESS
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PRIVATE EQUITY SPONSORS
PRIVATE EQUITY SPONSORS
NSORS
PRIVATE EQUITY BACKED CLIENTS
REPRESENTATIVE CLIENTS
ONSORS
BACKED CLIENTS LIENTS
PRIVATE EQUITY BACKED CLIENTS
PRIVATE EQUITY SPONSORS
Y BACKED CLIENTS
Cushman & Wakefield | TCV 4
PRIVATE EQUITY BACKED CLIENTS
Cushman & Wakefield | TCV 4
REPRESENTATIVE CLIENTS
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Cushman
OUR TEAM
BUSINESS INCENTIVES JANE ORLIN
STRATEGIC CONSULTING MIKE MCDERMOTT
STRATEGIC CONSULTING DIMITRIS VLACHOPOULOS
PORT ADMINIS ANASTAS
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ACCOUNT MANAGER OFFICE STEVE BILLIGMEIER
ACCOUNT MANAGER INDUSTRIAL DREW MCMANUS
TRANSACTION MANAGER ROB BAIN
TRANSACTION MANAGER SID DIXON
PRIVATE EQUITY CONSULTING DEBRA MORITZ
TFOLIO STRATION SIA FRENCH
INTERNATIONAL DESK SAM KING
PROJECT MANAGEMENT SUSAN LAGANKE
TECHNOLOGY SOLUTIONS MAITY PEET
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1401 Lawrence Street, Suite 1100 / Denver, Colorado 80202 / phone +1 303 292 3700 / cushmanwakefield.com
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