"To illustrate where some of this confidence is coming from, Reffkin relayed to investors and analysts some of what he and the team have observed since closing the Christie's International Real Estate acquisition in January of this year. Reffkin noted that since closing the transaction, they have been able to increase the number of net new principal agents to the Christie's business. Additionally, they have welcomed four new Christie's affiliates into the fold, with an additional six new affiliates in the pipeline."
"The title insurance business that was previously owned by Christie's has also seen massive improvements since the acquisition, experiencing a 1,000 basis point increase in attach rate, which Reffkin attributed to more Compass agents choosing to partner with what is now an in-house title operation. Similar improvements were recorded with Christie's mortgage joint venture with Guaranteed Rate, with Reffkin noting improvements to the profitability to both Compass's JV and Christie's JV post-close."
"Due to this success, Reffkin said he was making a CEO commitment that through the Anywhere acquisition, Compass will deliver more than $300 million in new cost synergies, representing 11% of combined annualized non-GAAP OpEx. This is a CEO commitment, backed by the same discipline and focus that allowed us to reset our cost structure without compromising our core growth engine, Reffkin said. We will hold ourselves accountable to this new benchmark, and we will update you on progress every quart"
Compass replicated its Christie's International Real Estate playbook and achieved measurable operational gains since the acquisition. The company increased net new principal agents for the Christie's business, added four new Christie's affiliates with six more in the pipeline, and improved the former Christie's title insurance attach rate by 1,000 basis points as more agents chose the in-house title operation. Mortgage joint-venture profitability with Guaranteed Rate improved for both Compass and Christie's JVs. The company delivered $30 million in cost synergies from OpEx improvements and committed to deliver more than $300 million in new cost synergies through the Anywhere acquisition, representing 11% of combined annualized non-GAAP OpEx, with quarterly progress reporting.
Read at www.housingwire.com
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