Home Property How many UK estate agents are primed for acquisition?

How many UK estate agents are primed for acquisition?

by Seamus Doherty Property Reporter
28th Nov 24 12:36 pm

Atomic Consultancy, the acquisition specialists founded by Lucy Noonan, reveals that the UK is home to an estimated 15,800 real estate companies that are primed for acquisition, based on the size of the business and its annual turnover.

The team’s vast experience in acquisition practices across the UK property industry has taught them that the agencies that are most often in the best position for acquisition based on two key criteria – a staff headcount of between 5 to 20 people, and an annual turnover of up to £1m.

To illustrate the varied opportunity on offer across the UK property market, Atomic Consultancy has analysed the number of real estate firms that currently meet this criteria.

Turnover

Atomic Consultancy’s analysis reveals that 93.2% of all UK property businesses generate annual turnover of up to £1m, equivalent to 109,815 companies.

London is home to the largest proportion of them, accounting for 24.1% of the national whole, followed by the South East (13.7%), and North West (10%).

This means that, from a financial standpoint, the vast majority of businesses fit the bill for a potential acquisition.

Employee count

As well as generating turnover of up to £1m, and in order to be primed for acquisition, Atomic Consultancy believes that a headcount of between 5 to 20 employees is ideal.

However, this does notably reduce the number of potential businesses that could be perfect for an acquisition.

Atomic’s analysis reveals that, across the UK, there are some 15,800 businesses boasting the ideal headcount of between 5 and 19 employees – equivalent to just 13.4% of total UK businesses.

The largest proportion of these businesses are, again, located in London (29.5%), followed by the South East (13.3%) and North West (9.5%).

Founder and CEO of Atomic Consultancy, Lucy Noonan, said, “The property market is a largely entrepreneurial industry. It attracts people who are business-minded, self-started, and target driven, and as such, we have a wealth of outstanding small to medium sized businesses operating across the sector.

This naturally leads to a high propensity for larger entities to snap up these smaller companies making waves within the sector which, in many ways, is a worthy reward for those who do decide to sell up.

To get to the point where you are approached for acquisition is a great compliment, and the potential payday that comes with being acquired is a suitable reward for all of the hard work that has gone into establishing the brand.”

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