Client: Office Products Company
Location: Across United States
Asset: Portfolio
Merger Integration
Client Uses Real Estate Consolidation to Generate Earnings
Problem:
An office supply, document management and copy machine sales company had been acquiring dozens of small businesses in concentrated geographic areas over the previous five years and had grown to 750 locations. In this wave of acquisitions, the overall business strategy was to consolidate the various regions and re-invent the company’s business model through an SAP implementation and consolidation effort.
Solution:
While management consultants were completing their SAP and other consolidation efforts, CPL evaluated the real estate impact of this workplace transformation. This involved creating a real estate financial model that showed the business migration from the "current state" to the "future state" condition of the company and measured the associated earnings that would be generated from the consolidation.
Outcome:
The company reduced its number of facilities from 750 to 150 over a three year period, HR reductions along with a new IT platform were instituted creating strong synergies, and a "best practices" model was put into process for the regional businesses within the organization – generating $4 million per year in savings.