Pros include:
– Cashflow injection
– Increased sales commission opportunity for sales side of the business if applicable
– Often it is easy to add value to a rent roll being purchased
– Profitability increase when merging outgoings of a business ie; administration, commercial lease, cost of software
– Increase in new business referrals from marketing in place if this part of the business is acquired ie; website, social media, etc.
– IP gained on acquisition is a pro that is often overlooked but a very real “Pro”
Cons include:
– Taking on a “dirty book” can be rather painful and costly in terms of time and energy to clean it up
– Attrition or loss risk of clients during acquisition as there are many factors that must be handled carefully during a rent roll acquisition
– Taking on staff that are not at the same level as your own in terms of knowledge and skill set. Also, bringing different teams together can be culturally challenging.
– Employing a BDM is often challenging. A lot of time and expense is involved in employing BDM’s, sometimes without the necessary return on investment.
