La Rosa Holdings Corp. (NASDAQ: LRHC) shares are experiencing a notable surge today, marking a remarkable increase of 149.67% to $3.48 at the latest observation during the ongoing session. This upswing in La Rosa’s stock value closely follows a strategic acquisition move.
La Rosa (LRHC) has officially announced the acquisition of a full 100% interest in one of its franchisees, namely La Rosa Realty Winter Garden LLC, situated in Winter Garden, Florida. The acquired entity in Winter Garden has demonstrated commendable financial performance, boasting a revenue of $1.4 million along with positive cash flow generated from its operational activities.
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Notably, the franchisee specializes in offering brokerage services for both residential and commercial real estate, complemented by coaching and support amenities for agents, which are rendered on a fee-based structure. This acquisition aligns with La Rosa’s broader strategy of de-franchising while targeting franchisees that exhibit robust growth in revenue, agent count, and profitability.
LRHC has outlined its plans to acquire additional franchisees, along with two auxiliary service firms, as part of its ongoing endeavors. With a series of acquisitions in the pipeline, La Rosa aims to achieve an annualized revenue run rate of $100 million by the conclusion of 2024, with the aspiration of attaining profitability by early 2025.
La Rosa stands out in the real estate sector by offering agents the choice between a revenue-sharing model and an annual fee-based arrangement, with agents benefiting from 100% commissions—a disruptive approach that challenges traditional industry norms.
This innovative business model has enabled La Rosa to attract a greater number of agents, fostering an upward trajectory in agent count while many competitors grapple with dwindling figures. As La Rosa continues to integrate additional franchisees into its portfolio, the company anticipates further expansion in both top-line and bottom-line metrics.
In addition, La Rosa actively took part in the Winter Wrap Up MicroCap Rodeo Conference, which took place digitally between February 20th, 2024, and February 23rd, 2024. The company’s vision and strategic ambitions were showcased in a presentation given by Chief Financial Officer Kent Metzroth and Chief Executive Officer Joe La Rosa on Wednesday, February 21st.
