One of America's largest builders of single family homes was adding multifamily developer/builder to its business model. During the RFP process they were advised that the provider options for the market they were developing in, was limited to one provider. This created a perceived leverage for this one provider.
MAG was engaged to evaluate the proposal that was presented. We were also tasked with improving the offer and reviewing the draft agreement that was presented. Our engagement was performance/improvement based.
MAG quickly determined that there were additional providers in the market, increasing our leverage and options for the project. Through our national relationships with provider partners, we reached out and obtained additional access and marketing proposals for the project.
Now that the landscape had changed, MAG was equipped to reopen the negotiation process with the knowledge that multiple providers had the ability to serve the project. Best and Final proposals were requested.
MAG prepared a detailed summary of the proposals to include not only financial projections but also the technology that would be deployed by each provider.
MAG was successful in finalizing a transaction that included vastly improved business terms, including upfront door fees, ongoing revenue sharing, common area courtesy solutions, construction cost offsets, and a solution for the construction trailers. When combined, the value of the proposal totaled over $1M.