Real Estate Brokerages

by a searcher from University of Pennsylvania - The Wharton School

1 year ago

Has anyone looked at or (better yet) analyzed acquisition of a Real Estate Brokerage?

I recently got approached by 3 partners who are aging and looking to transition out of a very successful local brokerage. Question is: how to approach the transition stage and generating value once the owners scale back their work. 

I'm trying to determine how best to value the business and how growth would occur given the "kill what you eat" nature of brokerages.  If you've looked at this space, I'd welcome a short chat.  Thanks!

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searcher from Northwestern University - Kellogg School of Management

I used to work in commercial real estate brokerage and know that space fairly well. The biggest challenge with brokerages (at least on the commercial side...I won't speak for residential) is the retention of the people (and the relationships/name recognition tied to those people). It's probably likely that 20% of the brokers at the firm do 80% of the business, and any sale would need to be contingent upon those 20%ers staying with the firm. Just some food for thought.

1 year ago | like reply | 1 like

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