According to Intel survey results and interviews, years of market sluggishness and aggressive expansion by big corporations suggest that the big deals of the past may have been just a prelude to more acquisitions in 2025.
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While commission lawsuits and NAR battles have been making headlines, major acquisitions and mergers have been quietly taking place in the background. Examples include Compass acquiring Latter & Blum and @properties Christie’s International Real Estate, as well as Howard Hanna merging with Home Experts Realty. These events raise questions about the future of acquisitions in 2025 and what types of companies will be involved.
Experts and industry leaders believe that 2025 could be a significant year for mergers and acquisitions, building on the momentum from 2024. However, not every company may come out on top, as bigger and more powerful corporations are expected to lead the way in M&A deals.
Most brokerage leaders not focused on M&A
Despite the potential for increased M&A activity, a survey of nearly 200 brokerage leaders showed that mergers and acquisitions are not a top priority for many of them. While some leaders see M&A as a major focus, the majority do not have it on their radar for the near future.
Acquisitions favor larger companies
Industry experts predict that 2025 will see significant M&A activity, with big players likely leading the charge. Factors such as a slow market, successful growth by companies like Compass, and the rise of cloud-based brokerages are expected to drive acquisitions this year.
- Smaller companies may feel pressure to sell and cash out due to market challenges.
- Larger companies have weathered the storm and are now focused on growth through acquisitions.
- Cloud-based companies are attracting attention from traditional brokerages looking to adapt to new business models.
- Private equity firms, sitting on cash reserves, are expected to play a significant role in acquisitions this year.
“They are actively seeking opportunities and my phone is ringing constantly.”
Kinney also mentioned that this year, capital markets may be more inclined to invest in “strong companies,” enabling them to potentially acquire weaker ones. To maintain the integrity of the original content, we will ensure that all HTML tags, images, HTML header, and key points are preserved during the migration to a WordPress platform. This will allow for a seamless integration of the content while still maintaining its original structure and formatting.