Thoughts: My first concerns were it’s a commodity business with little to no differentiation. However, the way EFC is integrating itself in all the essential parts of the value chain is really impressive and help become a sustainable business model that can protect its margins. The cost optimization by Furniture business, the growth potential from the REIT and reduced dependence on landlords and other entities makes it a good bet. The cost of 1250 per sqft is really impressive and I think that can be key to success here.The focus on managed offices reduces the possibility of set liability mismatch as well (although high concentration can be risky)
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