M&A Report: Century-old New Orleans real estate company tops April M&A activity
May 23, 2024G.F. Gay Le Breton And Liam Norton, Chaffe & Associates Inc.//May 15, 2024
April saw another iconic New Orleans brand sell to a national company.
In a strategic move that continues the consolidation of the real estate industry, Latter & Blum, a century-old real estate firm, sold to New York-based, publicly-traded Compass, Inc.
The Latter & Blum acquisition marks Compass’s deeper move into the Gulf South market, with the transaction providing Compass its first offices in Louisiana and Mississippi. Compass acquired all of Latter & Blum’s residential and commercial operations. Lacey Conway, CEO of Latter & Blum, will continue to manage day-to-day operations. The financial terms of the deal were not disclosed
The acquisition is expected to create synergies between the two companies, combining Latter & Blum’s local expertise and strong market position with Compass’s cutting-edge technology and extensive network. Those tools are increasingly important in the real estate business today.
Latter & Blum, a family-owned business, has been a stalwart in the Gulf South real estate market since its inception in 1916. When Latter & Blum Chairman Bob Merrick bought the firm in 1986, it had revenues of $350 million. Over the next four decades, he expanded the company through a series of mergers across the state and eventually grew the company’s sales volume over $6 billion at its peak before the pandemic. The firm became the top real estate firm in the Gulf South, and was ranked #19 in the nation in 2022. Now with 32 offices and a team of 3,100 agents, the company closed $3.6 billion in transaction volume in 2023.
Compass, Inc. is a real estate technology company that provides an online platform for supporting buying, renting, and selling real estate. The company’s cloud-based platform offers an integrated suite of software for customer relationship management, marketing, client service, operations, and other functionality in the real estate industry. With nearly $228 billion in volume reported last year, Compass sits as the No. 1 firm by volume in the United States.
This deal gives both companies a win that promises to shift the real estate landscape in the Gulf South, amid industry turbulence, interest rate increases and the rising cost of doing business in a digital world. Additionally, a recent settlement by the National Association of Realtors over real estate agent commissions leaves large firms like Latter & Blum on the hook for potentially tens of millions of dollars in settlement costs. Compass announced a settlement deal with the class action cases recently, agreeing to pay $57.5 million and to make a number of changes to its rules and business practices. It remains unclear whether Latter & Blum will be protected under the terms of Compass’ settlement.
Also in April, WRSTBND, a New Orleans-based startup in the event technology subsector, was acquired by global ticketing leader AXS Group for an undisclosed price. This acquisition, announced on April 17, sees AXS take a majority stake in WRSTBND, a leading provider of access control, credentialing, and point-of-sale solutions for live events and venues. The investment is set to expand WRSTBND’s capabilities and services, offering a more streamlined and frictionless experience for event attendees.
WRSTBND’s co-founders, Conway Solomon and Jonathan Foucheaux, expressed their excitement about the partnership’s potential, saying, “From the very beginning, the AXS team shared our vision for how WRSTBND could be integrated and utilized for festivals and events all across the world. Together, with the help of their resources and our technology, we will continue to push boundaries to develop and implement unparalleled solutions for our clients and their patrons.” The integration of AXS’ Mobile ID technology and WRSTBND’s network will allow for rapid iteration and the release of new features, enhancing the customer experience.
This acquisition marks a significant milestone for WRSTBND as it further solidifies its position as a rising star within the event technology segment.
Finally, New Orleans saw its third recent deal in the vertical transportation segment. Tialto, LLC, formerly known as Bounds Elevator, was acquired by Elevator Service Inc. (ESI) of Grand Rapids, MI. ESI is a platform investment of Connecticut private equity firm Carroll Capital, which has helped ESI roll-up seven other elevator companies since October 2021.
Tialto, a player in the New Orleans market since 2019 under Tim Bounds, has been lauded for its superior service and dedication to quality. ESI previously announced acquisitions of New Orleans’ A-1 Elevator Service and Pinnacle Elevator in October 2023.
G.F. Gay Le Breton is managing director for Chaffe & Associates Inc., responsible for the corporate finance activities of the firm. Liam Norton is a corporate finance analyst with the firm. Investment banking services are provided by Chaffe Securities Inc., member FINRA/SIPC.