Key Takeaways
- Brokerages are valued at 1.5x-3.0x company dollar, with multiples driven by retention, recurring revenue, and owner independence.
- Five exit options: internal sale, external sale, merger, franchise conversion, and orderly wind-down.
- Exit preparation should begin 3-5 years before target date—rushed exits capture 30-50% less value.
- Reducing owner dependency is the highest-impact preparation activity for maximizing exit valuation.
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Test Your Knowledge
1.When should a brokerage owner begin succession planning?
2.What is the most important factor in determining a brokerage's sale value?
3.What are the three primary exit strategies for a brokerage owner?