He added that if the majors [image-nocss] are not willing to consider these options, then they will need to take a "time out" to let the credit market recover. "But let's be clear," Ruben said, "credit generally needs to improve."
Still, players on either side of the bargaining table can still win, despite such tough times. Ruben offers some suggestions for both buyers and sellers.
Buyers:
It's a pretty good time to buy with prices coming down, but retailers and investors still have to figure out where the financing is coming from. A lot of companies are spending on due diligence without a clue of where they are going to get the money. Get into that process sooner rather than later. Is it a mortgage you prefer? Buyers need to realistically think about what they can get financed. "It's important to get on that early on," Ruben said. Consider partnering with foreign investors. "We have people who want the assets but need someone to manage it," Ruben said. "It provides liquidity, and you get to [retain] management." Sellers:
Sellers should ask themselves if this is the time they want to sell or need to sell. Then they should be realistic about expectations. "The kinds of prices that were attainable in the past are probably not attainable now," Ruben said. If it is the right time, get help to see what assets will bring. Start a process to see where assets are and what they're worth-and try not to let disappointment get in the way. Think about how much money you want. Think about whether there are some creative things you can do to get the property sold. If someone could assume ownership vs. a pay off, the buyer would have to come up with less money. If not, consider a "carry back" mortgage to facilitate the sale. Consider breaking down the sale into small pieces. For a more insights on the changing c-store merger-and-acquisition landscape and to view CSP's exclusive countdown of the nation's Top 10 Changing Markets, watch for the February issue of CSP magazine.
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