PwC Transactions Blog

When a buyer needs to determine the purchase price of a target company, our experience teaches us that the real estate portfolio and its valuation do not always get the proper attention in order for the purchaser to bring out a competitive bid offer.
Indeed, do you make a distinction between gross market value, net investment value, fair market value, operational value (assessment of worth)? And what is the relevance?
Moreover, real estate can also be looked at from a carbon footprint, energy use and sustainability point of view and become the image of your Corporate Social Responsibility.

Download the presentation here! M&A Academy_What are real estate assets really worth_1 Dec 2010

Market studies chave shown that over the last years the total accounting value of all lands and buildings of the 30.000 biggest BelCo’s amounts to EUR 50 billion. When you know that the market value of said assets equals minimum 3 times their accounting value, this represents a dramatic hidden value in the current market environment. Indeed, when companies face difficulties to access the capital market, releasing such potential should be high on their agenda. In a broad sense, this can involve OpCo-PropCo structures either internally or externally financed, straight disposals, or joint-ventures with professional real estate investors.

During the sixth session of our M&A Academy on Thursday, 25 March, we shared with you how to free up cash from real estate, by tackling the corporate tax, VAT and registration duties matters to be taken into account while splitting up real estate from operational structures. We led you through the current environment, pitfalls and opportunities of this developing market.

Download: “How can real estate become a financing means for your company today?”

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