We, MPT Advisory, have many years of experience in transaction management. We show you best practice examples here.
Transaction management
is the accompaniment of an acquisition, the purchase or sale of a property and, if necessary, the letting. Transaction management is basically part of the service spectrum of asset management, but can also be provided as an independent service. The scope of services goes far beyond the activities of a real estate agent.
The transaction manager
is responsible for ensuring that a property offered meets the company’s own investment criteria and that the purchase or sale goes as smoothly as possible. Furthermore:
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As one can easily see, a multitude of activities are united under the term, which very significantly influence the success or failure of a transaction, if not even make it.
When does outsourcing of transaction management make sense?
In the case of “simple” transactions, the own asset management will usually have no difficulties in successfully processing a transaction.
Sometimes it is not possible to tell in advance whether a transaction is simple. In principle, however, one can assume that purchases and sales of individual properties in the asset class “residential” can be handled well internally in the home market.
The asset classes “retail”, “hotel”, but also “office”, apart from industrial properties, have their pitfalls. A lot of know-how is required. Especially when buying, it is advisable to conduct appropriate market research to determine how the property is positioned in the market and to question whether the current positioning is promising for the future.
The purchase or sale of a portfolio, also in the asset class “residential”, poses other challenges. Other markets are always exciting, even the German legal system is very different from the Austrian one.
Even the consideration of whether an asset deal or a share deal should be preferred is anything but trivial. The possibly better structuring possibilities of a share deal are offset by the higher risk, a number of additional questions are raised, e.g. deferred tax burden, liabilities assumed (such as warranties and liabilities in particular).
But good organisation is also required in the sale, e.g. good preparation of the teaser, the investment memo, the data room is often decisive for success.
The answer to the question of whether to outsource is therefore particularly dependent on this:
A good external transaction manager is also characterised by the fact that he works well together with the internal asset management.
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