what role do AM Analysts play in dispositions?
I know AM leads dispositions of assets and I'm sure this varies firm by firm, but from a general standpoint, where do the Analysts come into play? Are they interacting with the brokerage shops Analysts?
Just want to clarify that AM doesn't always lead dispositions of assets. I know of many firms (mine included) where Acquisitions plays a larger role.
TLDR: analysts are involved at pretty much every point in the disposition process, at least at my firm.
When we're starting to think of selling, I'll build waterfall models, run various sensitivity analyses, help coordinate documents with our equity partners, etc.
When we're ready to engage brokers, I'll reach out to them with a rent roll, T-12, and tax bill and ask them to put together an opinion of value for us. We'll wait a couple of weeks and then I'll consolidate the metrics from the various submitted BOVs (low/probable/high sales prices, projected revenue, expenses, NOI) into a matrix for easy comparison with the current property actuals. I'll go over this with my principal/VP and they will select a broker to award the deal. Then I'll put together a performance based fee schedule for the broker to sign off on.
When they come back to us a while later with a first draft of the OM, I'm the guy who reads it from cover to cover and makes edits for future iterations. I'll then go back and forth with team broker (typically their analysts) to incorporate changes. Once we have a good draft, principal/VP start digging through it and making their edits. Then they finalize and take the deal to market.
When we select a buyer, I'll work with our lawyer to track down DD items in advance so they can be incorporated into the PSA (contracts, typically). I'm the go-between for the buyer, our team, and our property management company for agreed-upon DD items in the PSA. If the brokers need to reach out to us regarding the DD process or to set up site visits, that all goes through me as well.
Would you mind sharing how many years experience you have? That sounds like a healthy amount of responsibility, in a good way.
1.25 years of experience and an MBA.
Pretty standard amount of responsibility for an associate. The higher ups don't want to be doing this stuff. I do a lot of the same work just on the other side of the table.
Is your firm typically an operating partner in deals or does is your firm always the sole investor? I only ask because I work as an AM Associate in REPE and do some of these items, but a lot are handled by our operating partners and just approved by us.
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