In the Explore Stage of Partnership Development, your main concern is finding out what a potential partner wants. You already know what you want because you’ve completed the Needs Assessment Tool. When you first contact a potential partner, make sure you share your information first. This will demonstrate your willingness to be open and direct. Make it clear that you’re looking for an equitable partner. This engenders openness and invites the other party to disclose information.
If this potential partner expresses an interest in the possibility of working together, ask them to explain what expertise they have, where they’ve been, and where they’d like to go. And make sure that you listen attentively to their answers. The point is to learn what they need and how you might fulfill that need. Stick to possibilities. Don’t ask for specific commitments or plans yet. If they’re still interested in working together after you’ve exchanged some information, explain the Partnership Continuum model. Explain how the model helps people communicate effectively and provides a blueprint for creating mutually beneficial partnerships. With this tool, you can see what information you need to give and get. At the same time, it will help your potential partner communicate more easily. It will put the discussion where it belongs: in the context of partnerships. To help you structure this discussion, ask your potential partner to complete the Partner Compatibility Analysis with you. While you’re getting information from your potential partner, you’re also providing information about yourself and where you want to go.
More and more investors are beginning to focus on transaction costs, and in less liquid market segments also on market impact costs. Clearly, good liquidity is an important factor in reducing market impact. International investors in particular are increasingly looking for liquid benchmarks and securities. This is reflected in the large cap bias found in many of the newer indices and exchange traded funds that are often based on very focused indices like, for example, the iBoxx Euro Liquid Corporate Index.
Capitalization rate? I know you’re thinking this is starting to sound complicated; definitely third-year college accounting. Well before you close the book, allow me to explain. First, it sounds way more complicated than it is. In numerical terms, the capitalization rate is the net operating income divided bv the purchase price:
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