While almost every business – from start-ups to established organisations – will have short-, medium- and long-term goals, if you’re serious about adding solid future value to your estate agency, it’s worth investing in Land & New Homes. Here’s why…
The estate agency sector has a long, rich history of mergers and acquisitions. Big brands tend to target successful challenger businesses before they become a commercial threat, enabling rapid scalability and ensuring a decent payday for the smaller partner. It’s often a win/win scenario.
A number of notable businesses have been acquired in recent months, as larger companies such as Countrywide and Romans try to increase their lettings portfolios. Currently, firms with a large number of properties under their management are key targets (they provide a decent ongoing turnover), but those with established Land & New Homes operations are also attracting attention.
Thomas Mae MD Kevin Ellis elaborates: “In the last year, a number of businesses have been acquired including Greene & Co and Preston Bennett by Countrywide, and Roberts Newby and Edwards Elliot by Strutt Parker. The common denominator is a strong Land & New Homes offering.”
“There’s no doubt that up-and-coming estate agencies with profitable L&NH departments – or even just a growing reputation for this line of work – are clearly seen as a valuable proposition by some of the larger firms looking to expand or merge.” Why? One of the key incentives of buying a L&NH business is the visibility of future house sales, with robust terms and conditions already in place. And it’s no coincidence that new homes are highly sought-after by Buy to Let investors – which is great for fostering a successful lettings business.
At Thomas Mae, we can provide you with all the expertise you need to get a new operation off the ground (or reinvigorate an existing business).
It all starts with land identification and acquisitions, and we have delivered Land training to over 1,200 negotiators, listers, managers and directors over the last 12 months. “And right now, the volume of land deals being delivered is high,” says Ellis. “Negotiators tend to be the best land finders, but knowing what to do with the lead requires some specialism. And that’s where we come in.”
Or to sum up: if you’re building a business, looking for an exit strategy or simply making plans for future growth, you need to be talking to Thomas Mae.Back to News