In real estate, a strong legacy isn’t just about the past — it’s about ensuring a thriving future, Joshua A. McGrath writes. If you’re considering M&A, here’s what you should know.
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After more than two decades in real estate, I’ve learned that a brokerage is more than just a business — it’s a legacy. It culminates years of hard work, relationships and a commitment to serving communities. But as time passes, every broker faces a tough question: What happens when it’s time to step back?
I’ve encountered this reality firsthand, both as a broker building a business and as a buyer looking to help other brokers transition their companies in a way that honors what they’ve built. Through my experience with mergers and acquisitions, I’ve realized that a smart exit strategy isn’t about walking away — it’s about ensuring the future success of what we’ve built.
The challenge of letting go
One of the most complex parts of succession planning is letting go. I’ve spoken with brokers who spent 30, 40 or even 50 years growing their businesses, only to find themselves unsure how to exit while protecting what they’ve built. I get it — when you’ve spent a lifetime shaping a company’s culture and reputation, the thought of handing it off to someone else can feel overwhelming.
One standout example is a broker I worked with last year. He owned a successful independent brokerage for over 35 years. He was passionate about his company and agents but exhausted from the daily grind. He didn’t have an interested family successor and wasn’t sure if selling was right until we started discussing what an acquisition could look like.
Rather than shutting the doors or selling to just anyone, he wanted a buyer who would preserve his company’s values, keep his agents secure and continue his legacy. That’s where our team at BHGRE Central came in. We worked closely with him to structure a deal that provided financial security for his retirement while ensuring his business thrived under our leadership.
What I’ve learned about M&A in real estate
Having been on both sides — growing a brokerage and acquiring others — I’ve gained insight into what makes an M&A deal successful. Here are some key lessons I’ve learned:
Culture matters more than numbers
It’s easy to get caught up in the financials, but a successful acquisition isn’t just about the bottom line. If the company cultures don’t align, the transition will be bumpy. Before making any deal, I always ask: Do our values match. Will agents and clients feel supported through this transition?
A clear transition plan is everything
The worst thing a broker can do — whether selling or buying — is assume things will “fall into place.” One challenge I’ve faced is ensuring the selling broker stays involved (temporarily) to help with the transition. A well-structured plan keeps agents, staff and clients from feeling like the rug is being pulled out from under them.
It’s not just an exit — it’s an evolution
For brokers looking to retire, M&A can feel like a farewell. However, the best deals honor the past while positioning the business for future growth. I’ve seen brokerages maintain their local identity while gaining access to better technology, marketing tools and resources to help their agents thrive.
Advice for brokers considering an exit or acquisition
If you’re thinking about selling your brokerage, start planning early. Too often, I meet brokers who wait until they’re burnt out or face challenges before exploring succession. The best time to prepare is before you feel like you need to.
For those looking to acquire a brokerage, I advise focusing on relationships first. Every broker I’ve partnered with wanted to know that their business was in the right hands. Taking the time to listen, understand their goals and structure a deal that benefits everyone — not just the buyer — has made all the difference in successful acquisitions.
The future of brokerages is in smart transitions
M&A isn’t just about growth — it’s about ensuring the businesses we’ve worked so hard to build don’t disappear when we’re ready to step back.
Whether you’re a broker looking to retire or expand, succession planning should be a top priority. The best transitions happen when brokers think ahead, align with the right partners, and structure deals that honor their legacy while embracing the future.
At BHGRE Central, we’ve been through this process, and I know firsthand the challenges and rewards that come with it. In real estate, a strong legacy isn’t just about the past — it’s about ensuring a thriving future.
Joshua A. McGrath is the CEO and founder of Better Homes and Gardens Real Estate Central in West Virginia. Connect with him on Facebook or LinkedIn.
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