In our current environment of consolidation, the nation’s largest brokerage firms continue to capture market share. According to the RealTrends 500 Brokerage Rankings, the top 500 firms are now collectively responsible for over one-third of the nation’s transaction volume. Interestingly though, these top firms only represent less than 1% of the nation’s brokerage firms, which means tens of thousands of small- to medium-sized firms are responsible for the other two-thirds of the transactions.
At RealTrends Consulting, we’ve done over 4,000 valuations, and much like the production distribution, the vast majority of these valuations have been for small- to medium-sized brokerage firms. And while the purposes for valuation vary, in all cases how these firms are valued is critically important. There are different approaches and numerous factors that affect valuation, and understanding these will not only give owners an idea of where they’re at, it’ll guide them on how best to create value.
Our latest eBook on valuations focuses on valuing small- to medium-sized brokerage firms. This book is available on our website for free download, and can be used as a guide for owners to better understand brokerage valuations.