In the words of Kenny Rogers, “Know when to hold em’ and know when to walk away.”
That is the argument that we hear from some brokers who are holding on to dear life, knowing they have no cards in their hand but continue to “bluff.”
The problem with this approach is that the longer they wait the more real the situation becomes and the less equitable the business becomes.
Our REMA advisors are really good at what they do, but we can’t work miracles when the “math don’t math.”
Here are some things that you should consider before you hold out too long and end up “owing the house” on a sucker bet.
Pay attention to Market Conditions
The real estate market is volatile right now, and for those of you who rode out the first storm in 2009 have to be asking yourself, do I want to do it again? What if we could tell you your brokerage is worth a lot more than you thought? Would it change your mind about holding out hoping you get dealt a magic ace for a turn in the market within the next year? Chances of that happening according to analysts in the real estate space and economic experts is no, that is not on the horizon.
The good news is, we have several buyers to the tune of over 7.5 billion dollars looking for a business just like yours.
Here are the things they will want to see and know from you:
Financial Performance- A brokerage with a track record of profitability and growth will be more attractive to potential buyers. Consider getting a RapidValuation with a REMA advisor to get numbers in real time to determine its true worth. What is your current debt? Do you own the physical property of the brokerage? P&L’s are going to tell your story so make sure you have all your cards on the table and the books are up to date.
Team and Talent- Your brokerage's success is tied to the talent and expertise of your team. If you have a well-trained, dedicated, and loyal group of agents and staff, it can be a strong selling point. Buyers are often looking for a smooth transition, and having a capable team in place can make your brokerage more enticing. BONUS points if you want to stay on in some cases. Some buyers want to acquire the brokerage but would love to leave it in your capable hands just removing the financial liability from you.
Technology and Innovation- If you are still using spreadsheets and word docs for your team, you better start looking for a CRM (Customer Relationship Management) system with integrations, automations and all the bells and whistles! Staying up to date with technological advancements in the real estate industry is crucial!!. Brokerages that embrace innovation tend to have a competitive edge. If your brokerage is ahead of the curve in terms of tech and systems, it can add value to potential buyers and make your brokerage more attractive.
So now, you have the basics down, we just need to figure out your exit strategy! This is where the team here at REMA comes in. We craft exit strategies for each person's needs. We take company culture, your goals, must-haves and do not want into consideration when we match you with buyers. In some cases, we don’t even have to look for a buyer because they have specifically “head-hunted” you!
When the time is right, you can make a smooth exit that benefits both you and your brokerage's legacy and REMA is here to help you every step of the way! Find out more... info@rema.global
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