Spring is a season of renewal—a time when people reflect on where they are and where they want to go. In real estate, this often means an uptick in market activity, and for brokerage owners, it’s no different. With industry shifts happening and financial landscapes evolving, many owners find themselves asking:
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Should I sell my brokerage this year?
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Is it time to partner with another brokerage to reduce costs and share the workload?
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Should I grow through acquisition and expand my business?
These questions are natural, and Spring is the perfect time to take action. But the M&A landscape is changing—understanding the trends can make all the difference.
The Market Is Moving—Are You Ready?
Recent months have seen major deals shake the industry. Keller Williams sold a stake to Stone Point Capital. Rocket Mortgage acquired Redfin. Rumors are swirling that Berkshire Hathaway might sell to Compass. These headline-making moves are just the tip of the iceberg—hundreds of smaller deals are happening behind the scenes.
With the average age of brokerage owners on the rise, transition is inevitable. Some are exiting for a well-earned retirement, while others see acquisition as the best path forward. The real question is: Where do you fit into this changing landscape?
What We’re Seeing in the Market
Having facilitated numerous transactions across North America, we’ve identified key trends that define today’s M&A market.
For Profitable Brokerages:
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Valuations remain strong – Multiples are holding steady, and despite market challenges, only slight dips in valuation have been observed.
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Deal structures are shifting – Market stress is manifesting in how deals are structured:
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Less money is being put down upfront.
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Payment terms are stretching out over longer periods.
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Gross Margin (Company Dollar) is key – Buyers base their willingness to pay on this critical metric.
For Struggling or Unprofitable Brokerages:
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No money down deals are common – Instead, buyers take over key expenses.
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Seller receives a percentage of Gross Margin (Company Dollar) – This typically ranges from 5% to 33% for a period of 2 to 6 years.
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Owners are expected to help with agent transitions – Most deals require the seller to assist for 3 months to 2 years post-closing.
The Time to Act is Now
Over the winter, we’ve helped clients successfully close deals in Texas, Florida, Arizona, Maryland, Washington DC, Oregon, Colorado, Tennessee, New York, Alberta, British Columbia, and beyond. As Spring unfolds, activity is only increasing.
If you’re considering a sale, a merger, or an acquisition, now is the time to explore your options. Don’t wait until the market shifts again—take control of your future while opportunities are ripe.
Need guidance? Let’s start the conversation.
Whether you’re looking to sell, buy, or simply explore possibilities, we can help you navigate the process strategically and confidently. Reach out today to discuss your options.