The Expansion Through Acquisition Results Essay

1465 WordsSep 20, 20166 Pages
Growth through acquisition results in many opportunities regarding building space. Acquiring another institution typically means acquiring its headquarters. A primary benefit of growth through acquisitions is the opportunity to achieve economies of scale in support functions, such as IT, HR, Accounting, and other departments that are typically housed in a headquarters building. With each of Advia’s acquisitions, we have made a specific concerted effort to use all available space in the most efficient way possible. However, we are at a point where additional consolidation and alignment of space will best position us for the future. This memo captures five separate, but related, building projects. 1) Janesville Branch Sale – Approval Requested As you know, the former Mid America Bank occupied a location 10 store fronts away from Advia’s existing location on Milton Avenue. After review of relevant factors, we have determined that the smaller MAB location would be best for Advia’s retail presence going forward. Advia’s location has significant unused space, as well as two tenants that bring nominal income but have leases that require administration. Costs to operate are higher, such as with property taxes and maintenance. Therefore, our recommendation is to sell the Advia Janesville location and move into the MAB location no later than March 1, 2017. We have received an offer to purchase the Advia location at a price of $1,450,000. This building is on our books for
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