With the real estate market booming in many areas, it is a good sign for the rebound of the economy. Beyond that, it helps for those employed in that area of business and for those who own real estate firms to prosper and grow. One Baton Rouge firm seems to have no problem with their growth and expansion. Berkshire Hathaway has acquired Wayne Clark Realty.
The exact terms of the deal were not disclosed, and it was not required as they are a private company. The acquisition is part of a regional expansion strategy as the company just finished a small business merger of two firms in the area. Growth seems to be their strategy indeed, with Berkshire Hathaway being the fourth largest real estate company in the country. The brokerage started with 15 agents and has since grown to 55.
Wayne Clark adds another $50 million in sales volume in addition to 20 real estate agents and additional staff. Growth strategy is not unusual in this market with the current real estate market in a positive place in most areas. Acquisition is likely a wise mindset, acquiring and merging in this area should be a profitable risk in this market. As the company continues to grow, it is important to draft wise merger and acquisition agreements to plan a smooth transition and a profitable future.
It wouldn't be a surprise to see this brokerage firm continue to expand in this area. With the recovery from Hurricane Katrina making itself known as well, there are other areas in Louisiana the brokerage firm could expand. There could be other opportunities for competitors as well. The larger the firm, the more leverage one would likely have in the market.
Source: businessreport.com, "Berkshire Hathaway acquires Wayne Clark Realty," Sept. 5, 2017