Is it possible to sell a Real Estate Brokerage?
Mark Lukes is an advisor to and for a Real Estate merger and acquisitions company, and owns multiple successful companies in the Real Estate space, and invests in several others. He knows firsthand that there are not only a lot of people that are interested in selling their Real Estate brokerage, Mortgage or Title company, but there are also a lot of buyers looking to purchase these Real Estate industry businesses.
I value his business model and connections so much, I too am on his board of advisors and partner with the company, REMA (Real Estate Merger and Acquisitions), which he shares about in this episode.
Who is interested in selling:
Selling isn’t failure, it’s a transition point for a successful passion project to carry on. There are many reasons why a business owner could be ready to move on from their business venture, including some of the following:
- Agent overhead/burden
- Ready to Retire
- Desire to Merge
- Market shift/economic slowdown
- Scale assets
- Pass the baton
- The next generation isn’t interested in taking over the business
- Overwhelmed by new technology
Who is interested in buying:
Fact: 49% of the over one-hundred-and-five-thousand Real Estate Brokerages are run by people in their 60’s. Many are ready or soon will be ready to retire and move on.
One of the great challenges business owners in these positions face is knowing who would be interested – and qualified – to acquire their successful business, and at what cost.
A Property Management Company owned by a near-retirement couple in Texas is looking to sell because their oncoming generation does desire to take over their hard-earned business. That doesn’t mean the business has failed! In another state, a Holding Company in the NE is looking to take over Commercial Brokers and Property Management companies and wants to expand to and into Southeastern states. Mark and our team at REMA has a relationship with both parties and helped them work out a valuation that satisfied both needs.
REMA has built relationships like these with interested buyers from Holding Companies, individuals with money to invest, Brokerages, CEOs, Title companies and more. These people come knocking at Mark’s door seeking an introduction to a business that suits their interest, and he helps make the match a success for both parties.
The two situations he finds more challenging (though not impossible) to match are either companies in long-term franchise agreements (ie: Keller Williams, ReMax) and businesses who have shown a significant pattern of net loss. There are caveats to these situations, so it’s always best to seek an evaluation before ruling out if your business may be deemed desirable by someone else!
Who can help?
Merger and Acquisition (M&A) companies dedicated to the Real Estate industry are currently limited, if not nonexistent. Mark and his team at REMA have created a unique value proposition with his strategic internal network.
He is able to match a network of parties who wish to sell with a network of parties who would be interested – and qualified – to buy in a secure manor that benefits both parties. This creates speed where time is money. Currently REMA services over 15,000 agents.
If you find yourself in the position to sell or to buy a company, here is what REMA has to offer:
- A proven formula
- A frequency of practice within their network
- Sensitivity in a potentially emotional process – we know the hard work of growing a business and what it means to sell or acquire!
- NDA to secure the anonymity of his clients
- A rapid valuation model custom tailored to the RE industry – prior to a commitment for an estimate starting place and long haul solutions/exit strategy
Thinking bigger means keeping your eyes open for opportunity in problems to solve!
Do you have a desire to buy? To sell?
Reach out to myself, to Mark and to our team of advisors across the country and let us partner with you to make it happen!
When you're ready, here are a few ways we at Think Bigger Real Estate can help you...
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