I
n the wake of the National Association of Realtors' (NAR) nationwide commission lawsuit settlement, industry experts predicted a wave of consolidation. RealTrends Consulting co-founder Steve Murray forecasted significant changes to the industry, leading to consolidation, and his prediction has come true with numerous acquisitions.

    Companies like Compass have acquired @properties and Christie's International Real Estate, while Rocket Companies has bought Redfin and Mr. Cooper, and Lower purchased Movoto. This trend is expected to continue as companies prepare for deals.

    To prep for a potential acquisition or sale, company owners and leaders should start internal preparations early. Director and shareholder Lisa D'Ambrosia advises getting owners together to discuss expectations and end goals. She also recommends meeting with financial planners to determine the necessary number for a deal to make sense, especially for those exiting the industry.

    D'Ambrosia suggests including an attorney, accountant, and outside consultant in the preparation process. Once a company has prepared itself, found a partner, and settled on terms, it's essential to have a well-planned announcement and integration strategy.

    Scott Wright of RealTrends Consulting emphasizes that M&A doesn't end at closing; instead, it begins with a clear plan for integration. Jason Mitchell, CEO of the Jason Mitchell Group, takes a phased approach, setting expectations and meeting cadence before the deal is signed.

    To prevent agent flight during the transition period, broker-owners or CEOs should inform top-performing agents about the deal early on. Mayur Raichura, senior partner at Pixces Consulting Group, recommends including these agents in both companywide announcements and public statements.

    Lacey Conway, head of M&A for Compass, stresses the importance of communicating with existing agents, explaining why the acquisition benefits them. With industry consolidation expected to continue, companies must consider the potential ramifications on their firm's culture and people.