The long-standing market slowdown and aggressive expansion by large corporations are likely to have been the prelude to more acquisitions in 2025, Intel’s findings and interviews suggest It’s there.
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The committee’s lawsuits and fights involving the National Association of Realtors have dominated recent headlines. But quietly in the background, something else was going on: major acquisitions and mergers.
Famous examples include the compass that buys the latter and Blum in April, @Properties Christie’s International Real Estate to buy in December, and Howard Hanna merges with Home Expert Realty last month. These and similar stories raise some questions. Will the same major acquisition continue this year? What types of companies will buy and what types will be eaten up?
In other words, was 2024 a prelude or an additional note to the integrated story?
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To find out, Intel contacted industry experts – both in non-record talks – surveyed brokerage leaders in the latest INMAN Intel Index Survey.
The key point from these efforts is that a variety of factors are potentially converging to make 2025 a banner year for mergers and acquisitions. Put another way, 2024 could actually be just a prelude.
But at the same time, not everyone is likely to be the winner of this story. Instead, large, powerful companies with a track record of success in a lean era may be the ones making the most headlines for M&A deals this year.
Most brokerage leaders don’t focus on M&A
In January, Intel asked brokerage leaders to rank mergers and acquisitions on a scale of 1-5. One showed that M&A was not on the radar, while five showed that there was an imminent debate. The results suggested that mergers and acquisitions were not particularly high on the priority list of nearly 200 brokerage leader responders.
Almost 47% of survey respondents chose one. In other words, M&A is not on the radar. Another 12% chose two, indicating that M&A is also a lower priority. Only 8% of respondents selected five, with an additional 12% choosing four. This is an answer that shows that M&A is our number one priority. When Intel asked leaders about M&A in 12 months, the results were similar. In that case, 36% of respondents chose one. This too in this question means the topic is “not radar”, with an additional 16% choosing two. Only 11% of respondents selected five.
Acquisitions go to large companies
However, this does not mean that mergers and acquisitions are not a big deal this year. In fact, everyone who spoke to Intel for this story predicted important M&A news in the coming months.
“I think it’s going to be a very active year,” Ojo/Movoto.com president Chris Heller told Intel in a broader sentimental comment. “I think a lot of companies are trying to grow. I think we’ll see a lot of activity.”
Therefore, it is possible that M&As are not evenly distributed. In mass, acquisitions may not be on all radars, but it is a very important topic for the radar of a few big players.
Experts have provided several reasons why 2025 could be active against M&A.
The slow market has been putting pressure on small businesses for several years. “Companies say they’re basically saying I can’t see a way out of it,” Cofano told Intel. “As the industry goes through challenging times, you tend to see a lot of integration,” Heller said. Large companies such as Compass have been able to grow despite the slower market. For example, Compass reported growth in both revenue and agent counts for the first three quarters of 2024. Exp’s agent count growth remained stagnant in 2024, but reported revenue growth in the first three quarters of last year. “It feels like the big business has probably overcome the storm,” Heller said. “They don’t see 2025 as ‘Let’s get to the other side.’ They see 2025 as “now we have to grow.” “In contrast to small businesses that may be more opportunistic in how they approach acquisitions through relationships at the local level. Cloud-based companies such as EXP, LPT, and Real are more likely than traditional brokerage companies. It is also growing and has a more lean business. As a result, some M&As can occur as traditional operations are looking for access to these business models. For example, the actual brokerage reported last fall that its agents exploded over 2,000 people between July and October. “If traditional brick and mortar companies suddenly become cloud-based, it’s not possible. It’s almost impossible,” Cofano said. “They almost need to kill old models.” Private equity companies have been sitting on the sidelines for the past few years. “Many of the acquisitions come from private equity,” says Ben Kinney, co-founder of Place, who made five acquisitions last year, from private equity. “They’re sitting on a huge amount of cash that they couldn’t deploy. They’re looking for opportunities, and my phone is ringing from the hook,” Kinney also said, adding that the capital market has been “a powerful corporation” this year. He said he might give more money and put him in a “position to feed weaker businesses.”
Brokers are most interested in the acquisition
Intel also asked brokerage leaders who have M&A on radar what kind of transactions they might consider. Most people show that they are more interested in energizing their competitors than drinking themselves.
Several respondents (48%) said that brokers that attracted competitors in the market are something to consider this year. The second most popular answer, 38%, noted that their company would make acquisitions to expand into new markets. Only a total of 23% indicates that the leadership team is open to sales.
Strong Survival
Continuous market pressure means that one type of acquisition that could become common this year involves companies that don’t yet understand the new normal.
“On the outside, they may seem struggling, but maybe they are,” Heller said of some of the acquisition targets. “Things aren’t improving at the speed they need.” “In real estate brokerage and brands, a key measure of success is the number of great real estate agents you attract and maintain,” says Keller Williams. Mark King, former president of the film, told Inter. As you grow or retreat, there is no stagnation. Therefore, companies that do not want to evolve, grow and increase their value towards local agents will likely be the goal of an acquisition. ”
However, the most flashy deals can involve actually thriving companies.
“In these scenarios, the companies being acquired need to look at 1+1 = 3 scenarios,” Cofano says. “They are not necessarily companies that feel they are struggling financially or have no way to move forward. But with the acquisition, they and their agents have been forced to take on new ownership, resources and size, and larger. Everything an organization can offer will help you do well financially.” Kinney also points out positive cash flow companies (local brokerages and title companies as potential acquisition goals. “These companies are sold to private corporations, public companies, or other profitable private companies that trade at multiples of EBITDA.”
Drops economics
While the Intel Survey questions focused on brokerage leaders, Proptech repeatedly appeared in Intel’s conversations for this story. And for all the issues, what the market has given to securities companies is equally bad, at least for many prop tech companies who make money from real estate professionals, at least for the much less cash experts. That’s what it is. As a result, 2025 could be a time when companies win the world of Proptech to work together to survive or reduce losses in the 11th hour.
In other words, PropTech could become ground zero for real estate M&A in 2025.
“There are many startups that have been launched over the past five years, and if they are not beneficial, they will be targets,” Heller said. “If they don’t succeed in finding a home, they often merge with other companies.” Kinney said there could be companies in high-tech “low product fit and low revenue.” He said there is. In that case, “these companies are often fire sales and are purchased for scrap by small businesses that aim to create new revenue streams or increase their own numbers.” Other companies are good. You may have a product, but you are fighting revenue growth. “These companies are acquired through a combination of cash and stock, providing founders with the opportunity to win bigger wins with the acquisition company,” Kinney said. “They are usually purchased by companies that are trying to expand their customer base or product line.”
Methodology Note: This month’s Inman Intel Index survey was conducted on January 21st. 4, 2025, 652 responses were received. The entire Inman Leader community was invited to participate, and spinning randomized selections of community members were encouraged to participate via email. Users answered a series of questions related to the corners of self-identification in the real estate industry, including real estate agents, brokerage leaders, lenders, and proptech entrepreneurs. The results reflect the opinions of the engaged Inman community. This survey is conducted monthly.
Please email Jim Dalrymple II
