Mergers & Acquisitions (M&A): A RE/MAX, LLC Growth Initiative

THE WHY:

Why should I consider a merger or acquisition?

If you are interested in growth, this is a great way to grow by multiple agents versus one at a time. A merger or acquisition could help you grow vertically by rolling another brokerage’s agents into your existing brokerage. Additionally, it could help add market share, enter new market areas and gain additional leadership.

Why should I talk to RE/MAX, LLC about an M&A opportunity in my market; wouldn’t they just sell them a franchise?

RE/MAX, LLC targets specific areas for franchise growth, and if your area happens to be included, it may be considered with or without your involvement. If you provide an introduction, we work to help them understand the value of RE/MAX^® and working with you. Depending on their size and potential gains, we could also provide you with benefits and incentives to help facilitate a merger or acquisition. If an opportunity is available and you cannot make something work, we consider the options that work best for all involved. There are no guarantees. However, RE/MAX, LLC works hard to support broker/owners with M&A opportunities. Working with current broker/owners is a priority over setting up a brokerage from scratch.

THE WHAT:

What are the benefits of working with RE/MAX, LLC on M&A opportunities?

RE/MAX, LLC has a franchise sales team fully focused and dedicated to seeking out M&A opportunities across our regions. There are many “gaps” where the team aims to either establish a new franchise, work with an existing broker/owner to expand or work with independent brokerages in the market to convert or consider a merger or acquisition. This team can approach potential brokerages as a neutral third party—not as a competitor in the market—to help facilitate conversations. The team can also help clear up any misperceptions about the RE/MAX organization and educate the prospective broker/owner on the value of RE/MAX and the network.

What role does RE/MAX, LLC play in supporting M&A opportunities?

Depending on the number of agents, market share, productivity, etc., RE/MAX, LLC may be able to offer financial incentives to help make an M&A opportunity viable. These financial incentives could include waiver of the Initial Franchise Fee(s), waiver of monthly Continuing Franchise Fees and Marketing Fees, waiver/deferral of Annual Dues or funding to help offset many of the costs of conversion to RE/MAX (signage, other expenses to re-brand, etc.). Incentives are evaluated on a case-by-case basis and restrictions apply.

What if I am not in growth mode and want an exit strategy?

If you want an exit strategy, it’s the ideal reason to start exploring M&A opportunities and engage our franchise sales team to identify candidates to approach with a “reverse acquisition.” The team would target candidates interested in a conversion, merger or acquisition with RE/MAX. Once an NDA or Confidentiality Agreement is signed, the narrative flips to considering an acquisition or merger with your brokerage.