Watch as Brian Icenhower & Scott Wright of Real Trends discuss how real estate brokerages get acquired & how broker-owners can do make their firms more attractive to merger & acquisition opportunities.
If you’re a real estate broker owner, team leader, or even a high-performing agent considering ownership, you’ve probably thought about this question at some point: “How do real estate brokerages get acquired?” It’s the golden exit strategy—a well-earned reward for years of building, scaling, and managing a business. And for many, it represents the ultimate professional milestone: sailing off into the sunset with a lucrative sale in hand.
To help you understand what truly makes a brokerage attractive to potential acquirers, I sat down with my friend and industry expert Scott Wright, Partner at Real Trends Consulting. Scott and his team have conducted over 4,000 brokerage valuations and advised on countless mergers and acquisitions. Whether you’re actively planning an exit or just want to make your business more valuable, this guide will help you get there.
Listen to this episode of The Brian Icenhower Podcast.
VIDEO: How Real Estate Brokerages Get Acquired – What Makes a Brokerage Attractive?
Why Brokerages Get Acquired
Let’s start with the why. The motivation to sell can vary—some owners have no succession plan, others want to cash out and retire, and many simply see the opportunity to monetize years of hard work. With the current “silver tsunami” of aging broker-owners and increased consolidation across the industry, knowing how real estate brokerages get acquired has never been more relevant.
Buyers are always looking for opportunities, whether they’re large national firms, regional players, or even local competitors. And while market conditions influence sale prices and appetite, there’s always a market for well-positioned brokerages.
The Core Factor: Profitability
Here’s the truth: Buyers aren’t buying your name, logo, or agent count alone. They’re buying your profitability.
Acquirers want to know if your business can produce consistent cash flow and recoup their investment. They’re asking themselves:
How profitable is this brokerage today?
How consistent is that profitability?
How easy is it to maintain or grow it under new leadership?
Your retained company dollar—what you keep after paying agents—matters more than ever. The national average is now just 13%, down from the days when brokers could keep 30% of every commission dollar. That margin compression means it’s essential to manage your business like a lean, profitable machine.
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Brokerage / Corporate Coaching Program
With the Brokerage / Corporate Real Estate Coaching Program, ICT will help firms set up the most effective and efficient systems for recruiting, agent onboarding, commission & fee structures, agent engagement & retention systems, recruiting, administrative work-flows, transaction management, staff hiring, agent onboarding, productivity training & accountability, financials & budgeting, marketing and much more!
Step 1: Clean Up Your Financials
To make your business attractive, your numbers have to be clean, organized, and easy to understand.
Scott Wright puts it simply: “We see more transactions fall apart due to dirty data than anything else.” When a buyer conducts due diligence and receives messy or incomplete financials, it undermines their confidence—and possibly kills the deal.
Here’s what you need:
Updated Profit & Loss statements (P&Ls)
Accurate general ledgers (GLs)
Clean commission structures
Clear records of lease obligations, vendor contracts, and agent production metrics
Want a simple tip? Once a year—ideally in December or January—scrub your GL. Cut the fat. Cancel unused subscriptions. Evaluate every expense. Even better: report your business credit card as lost and see which vendors chase you for payment—you’ll quickly realize what you can live without.
Step 2: Show a Lean, Profitable Operation
Profitability isn’t just about bringing in revenue—it’s about what you keep. That means slashing unnecessary expenses while maintaining service levels.
Remember, when a buyer looks at your brokerage, they want to see a consistent, dependable income stream. If you’ve cut waste and operate efficiently, your net income rises—and so does your valuation.
Here’s the formula we often use: EBITDA × Multiple = Valuation
EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) represents your adjusted operating income. Once you account for one-time costs, personal expenses, or owner compensation adjustments, that number becomes the foundation for your valuation.
Depending on market conditions and firm size, the multiple typically ranges from 1.5x to 4.5x EBITDA.
Step 3: Organize for a Seamless Transition
Buyers want more than clean books—they want a clean operation. That means:
Standardized commission plans
Easy-to-understand agent splits
Minimal owner production (or clearly separated)
Succession plans or leadership teams in place
Digital systems that track performance and productivity
If your business relies heavily on you—as the producing broker or central figure—it becomes less attractive. Buyers want to step in without losing half the value in agent departures or leadership gaps.
Step 4: Structure Matters – Commission Splits & Culture
Not all commission models are equal in the eyes of an acquirer.
Let’s say your agents are on 95/5 splits with a $10K cap. That might attract agents, but it leaves razor-thin margins. A brokerage like that has to scale massively to show profit. On the other hand, firms operating with 80/20 or even 70/30 splits (without caps) are more likely to be profitable, even at lower agent counts.
And here’s the kicker: when you’re acquired, your agents often move to the acquiring company’s commission model. If their splits are worse than what agents currently enjoy, retention becomes a challenge. So, alignment in commission structure—within 5% retained company dollar—is key to a smooth transition.
Culture also plays a huge role. A buyer wants a firm with:
Low turnover
Strong leadership
A recognizable brand
Loyal, productive agents
If you’ve built a healthy, positive culture with strong internal systems, your brokerage becomes more desirable—and valuable.
Step 5: Diversify Your Revenue Streams
If you really want to stand out, build multiple income streams beyond just commission revenue.
Many broker-owners are finding success in launching or partnering with:
Title companies
Escrow services
Mortgage joint ventures
Property management firms
Insurance agencies
These affiliated services not only boost profits, but they also help insulate your business from market shifts. In some cases, the value of these ancillary services can exceed that of the brokerage itself.
Whether you’re actively planning an exit or just want to make your business more valuable, this guide will help you get there.
Brian Icenhower
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Mergers and Acquisitions
Online CourseLearn how to expand your organization through mergers and acquisitions (M&A) of real estate brokerages, teams and more. Grasp the various options for structuring M&A transactions, company valuation methods, due diligence considerations, transition plans, and how to identify and engage potential M&A candidate companies. Learners will receive many downloadable scripts, checklists, plans, sample agreements and a variety of other tools to create a step-by-step process for the growth of any real estate organization. 
Mergers & Acquisitions
Click to watch more about this real estate training course
Designed for all learning types
Video Training
In-depth video with Brian Icenhower walking you through the entire merger/acquisition process, and providing tools and talking points for you to use.Written Workbook
Detailed and downloadable written workbook that provides you with the bullet points, a space for taking notes, as well as activities and key takeaways.Instructor Materials
Teach this course at your organization with the help of our downloadable presentation notes, presentation files, and Instructor's Manual.Course curriculum
Enrollment includes access to the following course materials for 6 months
Welcome to Mergers & Acquisitions- Welcome to Mergers & Acquisitions! A message from your Instructor, Brian Icenhower
- Schedule a Coaching Call
- Stay Connected via our REAL ESTATE AGENT ROUND TABLE Facebook Group
- VIDEO: Mergers & Acquisitions Fundamentals
- AUDIO: Mergers & Acquisitions Fundamentals
- Workbook: Mergers & Acquisitions Fundamentals
- Instructor’s Manual: Mergers & Acquisitions Fundamentals
- Presentation Outline: Mergers & Acquisitions Fundamentals
- Presentation PDF: Mergers & Acqusitions Fundamentals
- Presentation Slides: Mergers & Acquisitions Fundamentals
- VIDEO: Engaging M&A Candidates
- AUDIO: Mergers & Acquisitions Fundamentals
- Workbook: Engaging M&A Candidates
- Instructor’s Manual: Engaging M&A Candidates
- Presentation Outline: Engaging M&A Candidates
- Presentation PDF: Engaging M&A Candidates
- Presentation Slides: Engaging M&A Candidates
- Securing the NDA Talking Points
- Initial Approach Call Scripts
- SWOT Competition Analysis
- Discovery Questionnaire
- MLS Company Production Data – Last 12 Months
- VIDEO: Recruiting
- AUDIO: Recruiting
- Workbook: Recruiting
- Instructor’s Manual: Recruiting
- Presentation Outline: Recruiting
- Presentation PDF: Recruiting
- Presentation Slides: Recruiting
- Discovery Questionaire
- VIDEO: Due Diligence
- AUDIO: Due Diligence
- Workbook: Due Diligence
- Instructor’s Manual: Due Diligence
- Presentation Outline: Due Diligence
- Presentation PDF: Due Diligence
- Presentation Slides: Due Diligence
- Company Comparison Matrix
- Owner Information Request
- NDA Sample Agreement
- VIDEO: The Pro Forma
- AUDIO: The Pro Forma
- Workbook: The Pro Forma
- Instructor’s Manual: The Pro Forma
- Presentation Outline: The Pro Forma
- Presentation PDF: The Pro Forma
- Presentation Slides: The Pro Forma
- Earnout Formulas
- Example Pro Forma
- VIDEO: Valuation
- AUDIO: Valuation
- Workbook: Valuation
- Instructor’s Manual: Valuation
- Presentation Outline: Valuation
- Presentation PDF: Valuation
- Presentation Slides: Valuation
- EBITDA Approach Example
- EBITDA Approach Worksheet
- VIDEO: The LOI – Putting the Deal Together
- AUDIO: The LOI – Putting the Deal Together
- Workbook: The LOI – Putting the Deal Together
- Instructor’s Manual: The LOI – Putting the Deal Together
- Presentation Outline: The LOI – Putting the Deal Together
- Presentation PDF: The LOI – Putting the Deal Together
- Presentation Slides: The LOI – Putting the Deal Together
- Sample Letter of Intent
- VIDEO: Planning the Purchase & Transition
- AUDIO: Planning the Purchase & Transition
- Instructor’s Manual: Planning the Purchase & Transition
- Workbook: Planning the Purchase & Transition
- Presentation Outline: Planning the Purchase & Transition
- Presentation PDF: Planning the Purchase & Transition
- Presentation Slides: Planning the Purchase & Transition
- Sample Pre-Closing Checklist
- Sample Purchase Agreement
- VIDEO: Closing the Transaction & Beyond
- AUDIO: Closing the Transaction & Beyond
- Workbook: Closing the Transaction & Beyond
- Instructor’s Manual: Closing the Transaction & Beyond
- Presentation Outline: Closing the Transaction & Beyond
- Presentation PDF: Closing the Transaction & Beyond
- Presentation Slides: Closing the Transaction & Beyond
- Sample Launch Day Agenda
- Launch Day Checklist
- Sample Press Release
About this course
- $750.00
- 82 lessons
- 4.5 hours of video content
- 6 months of access to course materials
Reviews
"I use ICC systems, the Online Learning Center, and the coaching program to coach and train my team of over 30 agents. I use the ICC dashboard systems to keep my entire team accountable for their activities and set proper expectations."
Jake Rockwell
Over 500 Units Sold Annually
"I have coached with ICC for over five years. ICC has helped me quadruple my luxury business through marketing strategies so that I receive listings and sales through lead generation and multiple pillars of income."
Dennis Adelpour
Luxury Agent - West Los Angeles
"When we started coaching with ICC we worked all the time with some degree of success. Now, seven years later, we have grown to have the #1 market share in our area, we more than tripled our income and production, while also improving our work-life balance to enjoy our personal life with family and friends."
Tammi Humphrey
#1 Market Share & 100 Million in Annual Sales Volume
I use ICC systems, the Online Learning Center, and the coaching program to coach and train my team of over 30 agents. I use the ICC dashboard systems to keep my entire team accountable for their activities and set proper expectations.
Jake Rockwell
Over 500 Units Sold Annually I have coached with ICC for over five years. ICC has helped me quadruple my luxury business through marketing strategies so that I receive listings and sales through lead generation and multiple pillars of income.
Dennis Adelpour
Luxury Agent - West Los Angeles When we started coaching with ICC we worked all the time with some degree of success. Now, seven years later, we have grown to have the #1 market share in our area, we more than tripled our income and production, while also improving our work-life balance to enjoy our personal life with family and friends.
Tammi Humphrey
#1 Market Share & 100 Million in Annual Sales Volume Instructor Brian Icenhower.Welcome to the world of mergers and acquisitions (M&A), where real growth begins.
In this course, we’re going to break down the process of acquiring or merging with real estate businesses. It might seem daunting at first, but by the end, you’ll see just how achievable it is—even for those who never thought they could do it.
Let’s start with one simple truth: mergers and acquisitions are easier than you think. Most people assume M&A is reserved for massive corporations or elite businesspeople with deep pockets. That’s simply not true. If there’s one thing I want you to take away from this course, it’s this: with the right approach, you can successfully grow your real estate business through M&A without a massive cash outlay. Whether you’re a team leader, a broker, or an advanced agent, M&A can fast-track your growth and set you apart from the competition. By leveraging proven strategies, you can scale your operations, enter new markets, and build a thriving organization.
Take your business to the next level.
Whether you’re a team leader, a broker, or an advanced agent, M&A can fast-track your growth and set you apart from the competition. By leveraging proven strategies, you can scale your operations, enter new markets, and build a thriving organization. Add to CartTalk to a coach
If you've been considering hiring a coach, now's the time. Book a FREE coaching consultation session with your purchase of this course! Book Your Call
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Jake Rockwell
Over 500 Units Sold Annually
"I have coached with ICC for over five years. ICC has helped me quadruple my luxury business through marketing strategies so that I receive listings and sales through lead generation and multiple pillars of income."
Dennis Adelpour
Luxury Agent - West Los Angeles
"When we started coaching with ICC we worked all the time with some degree of success. Now, seven years later, we have grown to have the #1 market share in our area, we more than tripled our income and production, while also improving our work-life balance to enjoy our personal life with family and friends."
Tammi Humphrey
#1 Market Share & 100 Million in Annual Sales Volume
I use ICC systems, the Online Learning Center, and the coaching program to coach and train my team of over 30 agents. I use the ICC dashboard systems to keep my entire team accountable for their activities and set proper expectations.
What If You’re Not Profitable?
You might be surprised to learn that you can still get acquired even if your brokerage isn’t profitable. That’s right.
If your firm has strong agent production, good systems, and clear growth potential, buyers may still see value. In these cases, valuations often rely on gross margin or company dollar rather than net income. Buyers will analyze what expenses they could trim post-acquisition to bring it back to profitability.
So don’t count yourself out if last year’s numbers were in the red—there’s still a path forward.
Market Trends: What Buyers Are Looking for Today
Real estate is cyclical, and the M&A market reflects that. When the housing market booms, valuations go up. When we face headwinds—like rising interest rates, litigation, or reduced transaction volume—buyers get more cautious.
That said, deals are still happening, especially on the local level.
Local brokers are acquiring competitors to expand their footprint. Regional teams are merging. Even agent books of business are being sold. The key is positioning your business to weather the market and look attractive regardless of the broader environment.
Final Thoughts: Build Now, Sell Later
The best time to prepare for acquisition is before you want to sell. Whether that’s three years out or thirty, you should run your business as if a buyer might come knocking tomorrow.
To recap, here’s how real estate brokerages get acquired:
Prioritize profitability – Cut unnecessary expenses and maximize net income.
Organize your financials – Present clean, accurate, and consistent numbers.
Standardize operations – Build a business that can run without you.
Align your splits – Keep commission structures competitive yet profitable.
Build culture and brand equity – Create something buyers want to inherit.
Add income streams – Diversify with mortgage, title, insurance, and more.
Keep it clean – Maintain organized records, contracts, and agent data.
And most importantly: Talk to the experts.
Want guidance on achieving this kind of growth?
Click the button below and talk to an ICT coach today for a free business analysis and action steps for moving forward toward your growth goals.
