"They want to compete with CB Richard Ellis, Holliday Fenoglio,Eastdil and Secured," one insider tells GlobeSt.com. "With anin-house financing capability, they become a one-stop shop."
While no specific numbers were put to a potential acquisition,sources explain that the going rate these days is a four or fivemultiple of NOI, paid out in equal parts of stock and cash. Thosemultiples could rise based on the buyer's hunger for the perks theacquisition would bring—such as specific market penetration. Mergerdeals these days typically also include a three-year "tie-up" ofsenior executives.
There has also been some speculation that the merger target mayin fact be HFF. But while the platform is broader, the culturalfit, sources conjecture, is simply not there.
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John Salustri
John Salustri has covered the commercial real estate industry for nearly 25 years. He was the founding editor of GlobeSt.com, and is a four-time recipient of the Excellence in Journalism award from the National Association of Real Estate Editors.
