Should you consider amalgamating with another Letting Agency?
Running a business can be a really lonely place, and not only that, you expected to be experts in every detail, with no one to refer to for help, so it’s not surprising that right now, hundreds of letting agents across the country are amalgamating, joining forces and sharing resources and networks, to become stronger, it really is a sign of the increasing burden of regulation, legislation changes and compliance challenges, which isn’t going to go away.
It’s not for everyone, so is amalgamation, something you should be considering?
The best thing to do is to start by asking yourself a few questions:
- Are there areas you are weak in or struggle with, that you and your business would benefit from having more developed, such as systemisation or marketing?
- What would it mean to you if you could double the income to your business without doubling the expenses?
- If it meant all of the above, could you see yourself working with someone else?If you have answered yes to these 3 questions then it is certainly something worth considering as it may open up quite an opportunity for you.
All of our branches are encouraged to JV, acquire or amalgamate with other agents, in order to GROW, it’s the fastest way to do so, and most of them have done at least one of the above strategies, with some of them doing so, multiple times… (It can get quite addictive)
So what should you do, if you are considering growth through amalgamation or acquisition?
You have a few of choices to consider, and they are…
- Amalgamate with another agency and effectively two become one?
- Buy an existing agents portfolio
- Buy another business to add to your own portfolio or
- Join an existing network
Once you have decided which is the best plan for you, then you need to consider the following:
1) Identify your own company’s strengths and weaknesses
2) Research your competition and find out, what their ownership make up is and what their strengths and weaknesses are and whether these add to your business
3) Work out the best approach strategy
4) Get talking and strike a deal if suitable
It is through talking that amazing businesses grow, just look at Richard Branson, nearly all of his businesses were developed with someone else, as it really does allow you to leverage other peoples skill sets and make up for areas missing in your own.
You could also look to join an existing network or franchise, we have had 4 companies convert to our brand this year so far, and they have said, they joined us, so that they can benefit from the compliance management, property management services, client accounting and training, plus be part of a team and brand, that generates inbound leads for them too.
Have a go at drawing or writing what your ideal business partner, or acquisition would look, and see if you can find them…
Let me know how you get on – click HERE to drop me a line.