I've been at two firms where there was heated conflict with making sure when someone left they did not leave with the company's proprietary information, mostly because they went to a competitor. I'm curious as to what kind of data is sensitive at your company.
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It’s relationship business, the only thing proprietary is your clients....
Nice try...
I'm not asking anyone to reveal their secret sauce. I'm speaking in general terms
I’m being honest with you, I couldn’t think of any, maybe the breakeven price because that’s the bottom line of pricing, but that changes every single day, and I know producers go below breakeven to beat insurance co. all the time....
I think the obvious answer here is the proforma template, although we know you brokers aggregate everyone's stuff! I'd love to see a debt broker's library of models from firms across the country.
Do you send an entire model to the debt guys? I typically send a really watered down/extracted version.
We do a little of both. On the debt side, a lot of times it's an Argus run and cashflows in Excel. When raising equity, groups typically want the whole thing. I guess my comment should sub debt broker for capital markets, in general.
Was this person a broker? I've known of some brokerage shops in which one broker will hide the ball and the relationship with a coworker, although that's a shit way to look at the business.
Short of personal financial data or specific returns, I'm not sure what my company would get upset about. The model, I suppose, but I'm not sure why I would take it to another company in the first place and our model is a frankenstein of various stolen models to begin with, so that would be amusing.
One was a property manager for a portfolio of office buildings in San Francisco and the other a development manager for a boutique development firm. Two complete different worlds
An obvious example of proprietary data in Texas would be the property sales price because its a non-disclosure state. This dilemma creates more information asymmetry in the market. Brokers tend to have this advantage in the market since they're frequently close to the transaction
Totally on point with the Frankenstein Monster comment. It's what I use to describe how our model just keeps having random things added to it. It's had so much stuff added to it, that now, when you try to run macros or switch the calc's between loan options it takes a bit to process since it runs through so many tabs.
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We're an LP, so our current form JV agreement is a big one.
Without giving away any specific terms, what are some of the deal points in your JV agreement that your company wouldn't want to share?
At our large firm that does a lot of development projects, after every project ends the teams have to fill out a survey that includes basic construction costs, land costs, delays, and other basic information, so we have a big database of this information that the internal research team uses.
If a brokerage firm, they'd want to keep you from running off with their CRM data too.
Someone showed me a deal with the proforma in pdf. I asked for the excel version, to which they replied that it was "proprietary". There was nothing proprietary about it, they just didn't want me to ask them questions about how they arrived at their numbers - was a big red flag about how they would share info. And just took a couple hours or so to build the proforma in excel.
Don't know that its "proprietary" but we're very tight lipped about what aspects of our JV agreements, of our deals, etc are important. Always nice to be able to be seen meeting an investor/contractor/etc halfway when in reality we don't give a crap about what we're giving up.
We also have equity partners that we do a lot to keep out of other firms' hands. If we're the operating partner through which they funnel money into local deals, I don't want to let another group get a foot in the door and start making us give ever more aggressive terms to get money from these partners.
deleted for redundancy
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