USING A SIMULATION MODEL TO PLAN PROPERTY ACQUISITIONS: EVALUATION VS. BID PRACTICES
John R. Schuyler Consultant Aurora, Colo. Making profitable acquisitions in a competitive environment is difficult. This is because the winning bidders often pay more than the property is worth. This paper shows how to measure the important impacts of different valuation and bidding strategies: improving engineering estimates, adjusting bid fractions, and modifying reserve category risk adjustments. A less complex model is used to optimize the bid for a single acquisition.