Exit Strategy

Are you prepared?

As a Broker-Owner, planning your company’s exit strategy is fundamental to your business plan. It will help you focus on your end goal and align decisions accordingly. To make strategic choices, such as a merger, acquisition, or exit, it's important to have organized books and correctly measure the return for the risk and investment made in the business.

Business valuation

Do you know the true value of your business for a potential buyer or successor? Buyers want to see clear evidence of profitability and a repeatable cash flow stream. Are your financial records well-organized to convey some of the main factors that contribute to profitability?
  • A history of increasing revenue
  • Proper management and oversight of fixed and variable costs
  • Little volatility; stable earnings
  • Steady growth in net agents recruited
  • Desirable commission structure and agent pricing
  • Low turnover – experienced agents, managers, and other staff
  • Efficient business processes and procedures
  • Effective business planning and budgeting with accountability to a plan
Profitability is the primary measure of desirability to prospective purchasers. Ideally, they’d like you to demonstrate that every agent is profitable. To estimate the size of the opportunity, prospective buyers may request monthly reporting by agent in addition to the variable business costs. Do your records indicate this with clarity?

How RealServus can help

The first step in preparing for an exit strategy is to determine the company’s financial value and stability. Having excellent accounting and administrative practices along with organized records will help you do this (and is itself, business value). This is what we do! Maintaining accurate and organized financial records also makes the business evaluation process that much easier for prospective purchasers, eliminating roadblocks when decision making.

Smart buyers are looking for businesses with something unique that they can leverage to help accelerate their growth – this might include an exceptional administration team, successful management practices, and a proven means to mitigate risk. RealServus could be your differentiating factor.

A properly managed brokerage — where a new owner doesn't have to clean up the administration and can immediately focus on growth — could very well be your selling advantage!

Let us help you optimize your selling position
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