Issue:
Upon acquisition, the company CFO recognized a number of abnormally high operating and facility costs for the new subsidiaries. Management teams faced the complex challenge of integrating these facilities and rent schedules into their portfolio – and revising them accordingly with the company’s growth strategy.
Solution:
Avocat Group evaluated the facilities in question in order to develop a consolidation program to reduce operating costs and free up capital. By taking into account staffing needs, facility locations, size requirements, and revenue obligations, leaders at USA Floral were able minimize real estate liabilities within their growing company umbrella.
Result:
Avocat identified three fully refrigerated distribution centers totaling 120,000 square feet with inventory that could be accommodated in other company facilities. USA Floral was able to sell the properties to three separate buyers for $6.7 Million, and eliminate the operating costs for each of these facilities.
