In recent years, mergers and acquisitions have not been an unfamiliar occurrence within the real estate business. Many brokerages have merged or been acquired with other entities, but what exactly does that mean? The professional brokers at EXIT Realty Upper Midwest — the fastest growing real estate firm in Iowa, Minnesota, North Dakota, South Dakota, Wisconsinand Illinois — are here to clear up any confusion or questions regarding this process.
What Are Mergers & Acquisitions?
Mergers and acquisitions involve the transfer of brokerage ownership. Two companies that merge are consolidating their businesses into one single entity. One brokerage acquiring another means they have purchased the company and are now the majority shareholder.
Why Might Brokerages Undergo Mergers & Acquisitions?
A brokerage might be interested in growing their real estate business through mergers and acquisitions, especially if the franchise offers an enticing deal. Or perhaps a brokerage has no solid succession plan or family member to pass on the real estate business to. In some cases, a company’s only option is a merger or acquisition if faced with the possibility of going out of business.
How Do Mergers & Acquisitions Affect Brokerages?
Mergers and acquisitions can cause different changes within a brokerage depending on the terms of agreement discussed. Some may be acquired by another real estate business and retain their brand, while others convert completely, adopting their buyer’s business model and brand. For many smaller or poorer performing brokerages, mergers and acquisitions help many people keep their jobs.
If your brokerage is interested in a merger or acquisition, get in touch with EXIT Realty Upper Midwest. They offer a myriad of opportunities for professionals at all levels. Whether a seasoned real estate agent or a young professional just beginning a career, EXIT provides the right resources and training for your success. For more information, visit them online, follow their Facebook, or call (612) 414-4022 today.