REIT Roll-up Transactions: How Much is Your Manager Worth?

In REIT roll-up transactions, the value of contributed real estate assets is generally understood, as investors are usually comfortable with the well-established methodologies underlying real estate appraisals. The value of the management company is less straightforward, however, and often becomes an area of inordinate focus in roll-up transactions. So why is the management company a source of value, and how is that value best determined?

This article explores management company valuations from the following perspectives:

  • Why it is important to convert to internal management prior to a REIT going public;
  • The reasons why a manager has value in a roll-up;
  • Historical trends regarding management company valuations in REIT roll-up and internalization transactions;
  • The use of a discounted cash flow analysis to value management companies; and,
  • Factors that impact the values of management companies.
REIT Roll-up Transactions: How Much is Your Manager Worth? 2014-09-15T00:00:00.0000000 /insights/publications/transaction-opinions/reit-roll-up-transactions-how-much-is-your-manager-worth publication {C91DEFE0-8446-4573-8D7B-6D30B0BA9D81} {51947818-C499-4911-9447-3AA383066F9E} {624E4650-ED22-4EAF-A900-BBA49B4F735D} {6B6F3B01-98A6-4BC2-B2CD-CBD127447FB5}

Related Services

Duff & Phelps Corporate Finance

Corporate Finance

Fairness Opinions

#1 ranked provider of fairness opinions for boards of directors and special committees.

Fairness Opinions
Duff & Phelps Valuation Advisory Services

Valuation Advisory

Business Valuation

Valuation of a business or a business interest.

Business Valuation
Duff & Phelps Valuation Advisory Services

Valuation Advisory

Real Estate Advisory Group

Leading provider of real estate valuation and consulting for investments and transactions.

Real Estate Advisory Group
Duff & Phelps Corporate Finance

Corporate Finance

Fairness and Solvency Opinions

Independent opinions for boards of directors and special committees.

Fairness and Solvency Opinions

Case Studies

Insights