This blog recently discussed details of business mergers in Louisiana, and a recent local real estate company merger is being described as a reunion of sorts, as the smaller company now merging was part of the larger company in the 1980s. The financial details of the deal were not released. The merger will include 10 commercial real estate employees merging into the larger real estate company. However, the residential real estate side of the smaller company merging will remain independent.
A representative from the larger company noted that the merger fits with the company's goal of growth by joining local real estate companies. The larger company also operates a real estate company in Baton Rouge that it acquired in 1995. The representative also noted that the merger will provide greater resources to clients in the areas of research, technology and reach. It may also make future expansion easier.
The smaller company, which manages 800,000 square feet of retail space, was also being courted by another national real estate company. The larger company is a top 40 real estate company with sales greater than $2.92 billion. The representative for the larger company that is part of the merger also noted that Baton Rouge continues to be one of its strongest regions to operate in. Mergers can hold the promise of great business success, however, they can also be complex. Even a friendly acquisition can bring up a number of complexities to sort through.
It is important to understand the details of how a successful merger can be conducted to minimize potential challenges and difficulties that may arise and maximize the success likely envisioned by the merger. Proper guidance and knowledge of the process can go a long way to helping parties execute a successful merger in the commercial real estate business.
Source: The Advocate, "Jarreau merges commercial real estates operations into Latter & Blum," Timothy Boone, April 21, 2016