I’m not arguing BRE deserves RE/MAX’s full multiple. Real effectively paid roughly 9–10× standalone EBITDA for RE/MAX and only gets to 7× after expected synergies. Royal LePage is smaller and Canada only, so I’m using 7× on BRE’s high margin franchise economics, giving little or no value to the low margin corporate brokerage, and treating that as a discounted transaction comp rather than an aggressive one. I will write a detailed article or a note on it at a future date.
Price target? 7x EBItDA?
I’m not arguing BRE deserves RE/MAX’s full multiple. Real effectively paid roughly 9–10× standalone EBITDA for RE/MAX and only gets to 7× after expected synergies. Royal LePage is smaller and Canada only, so I’m using 7× on BRE’s high margin franchise economics, giving little or no value to the low margin corporate brokerage, and treating that as a discounted transaction comp rather than an aggressive one. I will write a detailed article or a note on it at a future date.
Thanks for sharing. Great article!
Thank You