Brokerage firm buyers are changing from large independents and networks to private equity firms.
In the 31 years of REAL Trends work in valuations, mergers and acquisitions, there have always been owner-operators of brokerage firms desiring to acquire other brokerage firms. Most recently, these were firms like NRT, HomeServices, and Howard Hanna to name a few of the most active acquirers.
Now, with the initial successes of Redfin and Compass, we’ve noted a significant increase in interest by investors, whether they are hedge funds, private equity firms, venture capital outfits and even Federal credit unions. While only a few deals are being done now, and even more are being investigated. So long as there is abundant capital for investment there in the U.S. economy, and the housing and related-services businesses stay this strong, there will be more interest.