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Going Behind the PMRG, Madison Marquette Merger
Madison Marquette and PMRG completed a merger agreement a few weeks ago that expanded the companies’ investment and property services, as well as broadened its reach into more markets. The combined company will be headquartered in Washington, D.C., and have a major presence in Houston.
Connect Media asked Rick Kirk, Chairman and CEO, to share a bit of what was behind the two companies’ decision to combine forces, in our latest 3 CRE Q&A.
Q: When looking into merger partners, what characteristics were the most important to you?
A: PMRG had evolved into a very entrepreneurial organization, focusing not only on our core service business lines, which include property management, leasing, facilities management, and construction, but also taking advantage of our national footprint and talent base to expand our development and acquisitions activities as a principal. It was important that a potential partner find value in each of our business lines, not just one. Last, but perhaps the most important factor, was the way each organization complemented the other, in terms of geographic presence and expertise. The number of people displaced in this merger was a tiny fraction of what it would have been had we selected another option.
Q: What challenges did you encounter during the merger process?
A: In general, this was such an obvious fit that there were very few major issues involved in the negotiations. Documenting the deal and obtaining required consents, while not particularly difficult, was very time consuming.
Q: What is the expected result or outcome of this new partnership?
A: This merger creates a tremendous vehicle for growth well into the future. The opportunities to provide a broader range of services and address different product lines for our combined list of clients and partners, coupled with Madison Marquette’s financial strength and ability to more efficiently access capital, is already paying dividends. Well before officially closing this transaction, we have been working together on any number of opportunities that I do not believe would have been identified, or pursued had we continued to operate separately.
For comments, questions or concerns, please contact Dennis Kaiser
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