Has anyone here every sold their brokerage (or even purchased someone elses brokerage)?

If so, can you provide some insight into:
- the key items that drive valuation and subsequent purchase price,
- what items are typically included/excluded in the sale (and under what type of conditions - for instance, how are deals structured to insure that goodwill / staff are effectively transferred without too many people jumping ship)
- if there is a "standard" multiplier that can be utilized to determine if the selling price is good

THanks

Are you looking to sell yours?

What area are you in? There is a lot to it. It's the same as selling commercial property and businesses. Give me a call if you want to discuss it.

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Larry Jensen, Principal Broker
St. Lawrence Properties, llc
www.StLawrenceProperties.net

What's My Mileage?

Just do it like you would a commercial property....My team has sold franchises before, it's no different.

Determine your assets, location, supplies, equipment. Depreciate those assets for their current market worth.

Then determine the cap rate you want to offer the new buyer. Not too awfully dificult.

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http://www.realestatecircleville.com
My Blog!
Brandon E. Schlichter
HER Real Living
Circleville , Ohio740-571-1606

I've heard the local Re/Max's here go for around $15k an agent. Theoretically, it would pay for itself in a year or two since the agent contributes $20k+ to the brokerage.

The tough part of this is that you have no control of the income producing side of the business (the agents). The bulk your assets are people and those people happen to be independent contractors. If they don't like the new management, they'll leave. Or, they may want to renegotiate terms.

It's hard to put a value on your agents when you can't guarantee they'll stick around.

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Denton Real Estate is the premiere website for home buyers in the North Texas area. If you're looking for Denton, Tx Real Estate, find your way home at DentonRealEstate.com.

The key question is whether the agents are likely to stick around or not. The bigger the brokerage, the higher the multiple you are probably going to get. Small businesses frequently sell for 2 to 4 x net, However, I think small real estate brokerages tend to be valued at fairly low multiples.

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Portland Real Estate | Portland MLS | Lake Oswego Real Estate
Milan Cole, Real Estate Broker
JMA Properties LLC, Portland, Oregon
(503) 953-3416