Retail Market Strategy: Indianapolis, Indiana
Residential Market Strategy: Salt Lake City, Utah
Market Strategy: Oldham County, Kentucky
We were able to confirm solid opportunity for new condominium and single-family units with exceptional absorption rates at appropriate price points.
A private development company in Mississippi retained Anderson Economic Group to conduct a feasibility study for their proposed development of a mix of dwelling units in a Planned Unit Development (P.U.D.) near Ocean Springs, Mississippi.
Nearly two years after the devastation that Hurricane Katrina brought to the coastline, these developers and our firm were among the first in efforts to develop new low-income and market rate housing to the area. The purpose of our study was to develop an optimal strategy for development, identify the opportunity for new multi- and single-family units, determine target price points and formats, and provide anticipated absorption rates. As a part of our work, we conducted a site visit, market tour, supply and demand analysis, and a thorough inventory of the current supply of for-sale houses within the local area.
After less than two months of pre-sales, the project sold nearly every unit in the planned development.
Franchise Value Analysis: Heineken USA and Alaska Distributors
Our analysis focused on the future cash flow that the mortgage wholesale operation would have generated had the plaintiff been allowed to continue directing the operation. The operation was set up as a unit of a larger bank, and generated income through interest earned on its loan portfolio, and by selling loans on the secondary market. To determine the value of this operation we estimated overall loan generation in coming years, taking into account economic and market changes and which loans would be added to the portfolio and which would be sold to the secondary market. Expenses of the operation were also forecasted, allowing us to estimate cash flows for the operation. These cash flows were then discounted to the present day to arrive at the value of the operation.
The findings of our analysis were summarized in an expert report which was used for settlement purposes. Shortly after our report was submitted our client accepted a favorable settlement offer.
A Chicago based commercial litigation firm, retained Anderson Economic Group, LLC as a expert in a matter involving the value of contractual rights to a share of profits earned by a mortgage wholesale operation. Our work was done on behalf of the plaintiff, who was seeking damages for termination of contact.
Patrick L. Anderson
AEG conducts an analysis of the Michigan “Prefunding” tax law.
The Taubman Company is a Real Estate Investment Trust (REIT) with more than 30 premier shopping centers located in 13 states. A Michigan corporation, the Taubman Company trades on the New York Stock Exchange under the symbol “TCO.”
In late 2002 the Taubman Company became the target of a hostile takeover bid made by rival Simon Property Group (SPG). In defense, Taubman management and major shareholders announced their intent to vote their shares in opposition to the takeover. SPG claimed that this intention triggered an obscure provision of Michigan’s Control Share Acquisition Act, and a federal judge agreed, thus disenfranchising some 33.6% of TCO voting shares. However, the judge’s opinion did leave the door open for State Legislators to clarify the intent of the Act, which was originally passed to make Michigan businesses less prone to hostile takeovers.
The Taubman Company’s legal team retained Anderson Economic Group to assess the proposed and existing legislation. As part of this, Anderson Economic Group released “Michigan Business Corporation Act Amendments: A Shareholder Rights Perspective,” which was used by the Taubman Company to highlight the benefits of clarifying the law. AEG also analyzed shareholder support for the takeover offer, provided independent research on a 1998 restructuring of the Taubman Company incorrectly portrayed by SPG, and compiled information on the legislation and the related court ruling for distribution on www.AndersonEconomicGroup.com.
Additionally, AEG Principal Patrick Anderson testified at State House and Senate Committee Hearings about the need to clarify the Michigan Control Share Acquisition Act. Ultimately, this clarifying legislation became PA 181 and was passed by Michigan lawmakers, providing better protection of shareholder rights, and restoring the legislative intent of protecting Michigan Companies from hostile takeovers.