How much does Compass pay to acquire brokerages?

It’s not a matter if, it’s matter of who.

(San Francisco, CA) — “There will be a single platform in real estate. It’s not a matter of if, it’s a matter of who will be the company that builds it,” said founder and CEO of Compass, Robert Reffkin at the Inman Connect San Francisco conference Thursday.

Thank you @inmannews for letting me share my vision for the future the @compass team is working hard every day to create for agents. Our goal is not to get market share or to be a technology company – it’s to improve the lives of agents so much that they don’t remember what life was like before. As the proud son of an agent and with many of my best friends being agents, this is a very personal mission for me. It will require time, capital and collaboration on a massive scale, but I believe if we work together we can build a real estate services platform that reinforces the value of a 6% commission and creates a second revenue stream for agents. If we can do that, we will create a beautiful future for our industry that we can all be proud of.

A post shared by Robert Reffkin (@robreffkin) on

Compass is a major competitor in the real estate industry due to its ability to acquire brokerages and infiltrate new markets.

On Thursday, Reffkin told Brad Inman, founder of Inman, that they acquire brokerages by offering the broker-owners four to six times their yearly earnings before interests, taxes, depreciation, and amortization.

Since January 2016, Compass has acquired the Hudson Company and Conlon Real Estate in Chicago, Paragon Real Estate in San Francisco, and ICS Realty in Aventura, Florida.

They currently operate in a total of 17 markets and have recently expanded to new markets in Seattle, Philadelphia, Naples, San Diego, and Tahoe. They have a public plan to achieve 20 percent market share in the top 20 metro markets by 2020.

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