Post by asadul7172 on Feb 15, 2024 12:06:27 GMT
Although 2020 was a difficult year in terms of health and the economy, the real estate market has managed to maintain the stability of its foundations. However, medium-sized agencies and developers have been seriously affected by the slowdown in the economy, lower real estate prices and decreased demand for real estate. As a result, it is expected that many of these small businesses will end up being merged or acquired by other real estate agencies. But what exactly does this procedure consist of? It's profitable? What challenges do the parties involved face? Keep reading to find the answer to all these questions! Merger of real estate companies With the term business merger we refer to the union of two or more independent legal entities that decide to unite their assets and form a new common company. It basically consists of the union between a real estate company A and another B, which decide to join forces to create a new company C.
From that moment, the original companies disappear and operations are carried out exclusively through the company that results from the fusion. The partners of the original companies, for their part, continue to be partners of the new company and retain their participation in the shares. Now, at this point a clarification is in order. A merger of companies is not the same as an acquisition or merger by absorption. The latter occurs when a company A absorbs another company B, but a new company is not created, but rather Estonia Email List operations continue to be carried out in the name of company A. Advantages of merging real estate companies The merger of companies is a complex procedure and requires a lot of time and dedication. However, considering the current market circumstances, it can be a really beneficial option for small and medium-sized businesses. Let's analyze why. Merger of real estate companies Market diversification Any company that wants to succeed in the real estate market must define a strategy based on the target audience it addresses. This is good practice. In fact, it is almost fundamental for the development of the business.
However, it also has another consequence: the company focuses on a specific niche and this results in a certain limitation in its positioning in the market. Now, when the merger of companies occurs, two specific niches come together. Therefore, the horizon of action of both companies is expanded and the possibility of diversifying the business arises. Brand Reach Expansion Another advantage also derives from the union of target audiences: the growth of the brand's reach. While it may be that both companies were direct competitors and that the target audience shared certain characteristics, it is unlikely that this is exactly the same. Therefore, after the merger, there is a significant and organic gain in public outreach. If this is accompanied by a good marketing strategy , it will end up increasing the chances of sales. Increase in revenue volume If we consider the expansion of the brand's reach and the diversification of the market, we can conclude that the new company will have more business opportunities. Therefore, it would be expected that their conversion rate would be higher than when both companies operated separately. Naturally, with more sales, revenue will increase. And, with this, the possibilities of growth will also increase.
From that moment, the original companies disappear and operations are carried out exclusively through the company that results from the fusion. The partners of the original companies, for their part, continue to be partners of the new company and retain their participation in the shares. Now, at this point a clarification is in order. A merger of companies is not the same as an acquisition or merger by absorption. The latter occurs when a company A absorbs another company B, but a new company is not created, but rather Estonia Email List operations continue to be carried out in the name of company A. Advantages of merging real estate companies The merger of companies is a complex procedure and requires a lot of time and dedication. However, considering the current market circumstances, it can be a really beneficial option for small and medium-sized businesses. Let's analyze why. Merger of real estate companies Market diversification Any company that wants to succeed in the real estate market must define a strategy based on the target audience it addresses. This is good practice. In fact, it is almost fundamental for the development of the business.
However, it also has another consequence: the company focuses on a specific niche and this results in a certain limitation in its positioning in the market. Now, when the merger of companies occurs, two specific niches come together. Therefore, the horizon of action of both companies is expanded and the possibility of diversifying the business arises. Brand Reach Expansion Another advantage also derives from the union of target audiences: the growth of the brand's reach. While it may be that both companies were direct competitors and that the target audience shared certain characteristics, it is unlikely that this is exactly the same. Therefore, after the merger, there is a significant and organic gain in public outreach. If this is accompanied by a good marketing strategy , it will end up increasing the chances of sales. Increase in revenue volume If we consider the expansion of the brand's reach and the diversification of the market, we can conclude that the new company will have more business opportunities. Therefore, it would be expected that their conversion rate would be higher than when both companies operated separately. Naturally, with more sales, revenue will increase. And, with this, the possibilities of growth will also increase.