Today’s real estate market is equally primed for those real estate broker/owners who want their company to be acquired by another and for those wishing to acquire an existing company. EXIT Realty Corp. International, a real estate franchisor with brokerage locations across the U.S. and Canada, today released a white paper entitled, “Mergers & Acquisitions in Real Estate Brokerage” which examines the reasons for an existing real estate brokerage to acquire another, for a brokerage to consider becoming acquired and best practices to help ensure a successful outcome for everyone involved.
According to the National Association of REALTORS® 2017 Profile of Real Estate Firms, 79% of real estate firms are comprised of a single office, typically with 3 full-time licensees, causing many broker/owners to lament their lack of inventory, their relevance in the market and their ability to stay current with technology. Owners of larger operations often share these concerns. In addition, the industry’s population is aging. According to NAR’s 2017 Member Profile, the median age of a REALTOR® is 53 with 30% over the age of 60 and only 4% under age 30. Many broker/owners do not have a solid exit strategy which adequately prepares them for retirement.
The author of the white paper is EXIT Realty Corp. International’s CEO, Tami Bonnell. As a 30+ year veteran of the real estate industry, Bonnell was instrumental in building three major brands and has successfully negotiated more than 100 mergers/acquisitions. Bonnell shares her expertise and case studies in the white paper which can be downloaded at www.exitrealty.com/whitepapers.
According to the industry experts at T3 Sixty, $2 billion was invested in the real estate technology space last year. “While it’s important for companies to be high tech, relationships matter most so it’s equally important to be high touch,” says Bonnell. “Even with advances in artificial intelligence and artificial valuation models, I believe that most of the business will continue to be transacted by real estate professionals. Technology will not replace real estate agents, but real estate agents who do not use technology effectively will be replaced by those who do. Many smaller companies can’t afford the technology, are afraid of it, or don’t want the responsibility of keeping abreast of the latest innovations. Now is the time to make a move.”
Bonnell will explore the subject of real estate brokerage mergers and acquisitions during a live webinar on Tuesday, June 19th at 4:00 pm and 7:00 pm ET. Those interested in attending are welcome to register here.
This correspondence is not intended and shall not be deemed to constitute any offer to sell a franchise. Franchise offering shall only be made by a franchise disclosure document. Please disregard if your company is currently under a franchise agreement.
