This case focuses on two young entrepreneurs who have created a company with an innovative business model that caters to an underserved segment of the local meetings industry. They have managed to establish a successful foothold in New York City, with three thriving facilities and rapidly growing brand recognition. However, the company’s co-founders have begun to think about expansion and whether their business model can be adapted for markets outside of Manhattan. The case gives a detailed overview of Convene’s business model and the nature of its facilities. It then presents an investment opportunity in Boston, and asks students to consider whether the proposed project is suitable as Convene’s first foray into a new market. Students are able to consider the opportunity from a market perspective as well as from an operational and financial perspective by analyzing the project based on the variables provided in the case. The case is intended to provide students with an understanding of deal dynamics from the perspective of both parties to the proposed transaction so that they can appreciate the interests that often influence deal structuring and how the different parties can appeal to those interests, while satisfying their own.
Rigaud, P., Legge, M., & Fleming, S. (2013). Convene: Pioneers in a corporate real estate revolution: Convene takes Manhattan. Cornell Real Estate Review, 11, 45-62.