Reffkin hints at how much Compass pays to acquire other brokerages

Reffkin said firm paid 4 to 6 times annual earnings

National /
Jul.July 24, 2018 12:00 PM

Robert Reffkin (Credit: Compass via Facebook)

When acquiring other brokerages, Compass pays between four and six times those firm’s annual pre-tax earnings, according to CEO and founder Robert Reffkin.

The company, which has scooped up four brokerages since January 2016 and is valued at $2.2 billion, pays in that range (before interest, taxes, depreciation and amortization) depending on the size of the business, Reffkin told Inman. Though it’s not clear exactly how much the brokerage has paid for its acquisitions, the company has indicated that its revenue for 2017 was expected to hit $350 million in revenue, according to Tech Crunch.

Since launching in 2012, Compass has raised $800 million, including a $450 million infusion from SoftBank’s Vision Fund last year.

“None of it is debt,” Reffkin said. “It never gets paid back to investors, no investor is ever going to ask for their money back. They have shares in Compass like you have shares in a public company’s stock.”

Compass will soon have a new revenue stream. The brokerage announced earlier this month that it will license its technology to other firms in non-core markets. [Inman] — Kathryn Brenzel


Related Articles

arrow_forward_ios
Eric Gordon
Eric Gordon on the evolution of the residential data game — and how to stay competitive in the new world
Eric Gordon on the evolution of the residential data game — and how to stay competitive in the new world
Big Tech locations in NYC
MAP: Here’s a look at all the Big Tech locations in NYC
MAP: Here’s a look at all the Big Tech locations in NYC
What will proptech look like in 2019 and beyond?
What will proptech look like in 2019 and beyond?
What will proptech look like in 2019 and beyond?
Robert Reffkin 
Compass’ Robert Reffkin bought $16M Tribeca pad: sources
Compass’ Robert Reffkin bought $16M Tribeca pad: sources
Compass CEO Robert Reffkin and REBNY president James Whelan (Getty; Whelan by Anuja Shakya; iStock)
REBNY slaps Compass with $250K fine
REBNY slaps Compass with $250K fine
Gene Martinez (Compass)
Gene Martinez, early Compass recruit, dies
Gene Martinez, early Compass recruit, dies
The Real Deal's E.B. Solomont
Compass investors in line for payday, $100M for a flex-living startup
Compass investors in line for payday, $100M for a flex-living startup
From left: American Express CEO Kenneth Chenault, Joshua Kushner, Richard LeFrak, Softbank CEO Masayoshi Son, Miki Naftali and Salesforce CEO Marc Benioff (Getty)
Compass’ IPO means payday for these investors
Compass’ IPO means payday for these investors
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...