Acquisition Team Staffing & Responsibilities

Based on the most helpful WSO content, acquisition team structures and responsibilities can vary significantly depending on the size of the firm, its focus, and available resources. Here's a breakdown of how teams are typically structured and responsibilities allocated:

1. Team Composition

• Smaller Firms:
  • Teams are leaner, and individuals often wear multiple hats. Analysts/associates handle everything from underwriting, due diligence, and memo preparation to administrative tasks.
  • Acquisitions professionals may also lead sourcing, negotiations, and investment committee presentations.
• Larger Firms (Institutional Shops):
  • Larger firms often have more specialized roles. For example:
    • Analysts/associates focus on underwriting, modeling, and preparing investment committee materials.
    • Dedicated due diligence teams handle property condition reports, zoning, and other technical aspects.
    • Senior officers focus on sourcing, negotiations, and high-level decision-making.

2. Responsibilities Allocation

• At Smaller Shops:
  • Analysts/associates are deeply involved in all aspects of the deal process, including underwriting, due diligence, and even legal coordination.
  • Acquisitions officers may take on broader responsibilities, including sourcing and market leadership.
• At Larger Shops:
  • Junior team members (analysts/associates) handle the heavy lifting on underwriting, modeling, and due diligence.
  • Senior team members focus on sourcing, negotiations, and maintaining relationships with brokers and partners.
  • Some firms have in-house legal teams or external consultants to assist with due diligence and legal matters.

3. Resource Allocation

• Internal Resources:
  • Larger firms often have internal due diligence teams, in-house legal counsel, and administrative staff to support the acquisitions team.
  • Smaller firms may rely on external consultants for due diligence and legal work.
• Junior Team Responsibility:
  • In many cases, junior team members are expected to prepare memos, conduct market research, and assist with investment committee presentations.

4. Your Firm's Structure

• Your firm's structure, with one analyst/associate and four acquisition officers, seems to place a heavy burden on junior staff. This setup is not uncommon in smaller or mid-sized firms but is less typical for institutional shops with $25B+ AUM.
• At larger firms, it's more common to see a better balance of responsibilities, with dedicated teams for underwriting, due diligence, and administrative tasks to support acquisitions officers.

5. Is Your Firm an Outlier?

• While your firm's structure isn't unheard of, it does seem more resource-constrained compared to other institutional shops of similar size. Many larger firms aim to provide more support to their acquisitions officers to allow them to focus on high-value tasks like sourcing and negotiations.

If you're feeling stretched thin, it might be worth discussing resource allocation with leadership or benchmarking against other firms in your network to highlight potential inefficiencies.

Sources: Life in Acquisitions (Analyst/Associate), Life in Acquisitions (Analyst/Associate), Q&A: REIT Acquisitions Associate, Acquisitions Analyst Advice - New Analysts, Q&A: Real Estate Acquisitions Analyst. Uni -> BO -> Mtg Financing -> Acquisitions