Belvoir has this morning announced the acquisition of Northwood, the largest remaining independent lettings franchise in the UK, adding a further 86 offices to the Belvoir network, and taking the total number of outlets to 301.
The £22m deal, which will be part-funded by the placing of new shares, propels Belvoir into first place among the UK’s property franchise networks, ahead of Martin & Co.
Northwood’s chief executive Gemma Goodson and managing director Eric Walker are staying with the business.
Dorian Gonsalves, Belvoir’s managing director, said: “I am delighted to confirm that, subject to completion today, Belvoir will be acquiring Northwood GB Ltd.
“Northwood, which was started in 1995, is a very well-respected lettings and sales network with a strong lettings bias and the opportunity to acquire the company represented a clear strategic and cultural fit for Belvoir.
“It is also indicative of our commitment to developing the network with multi-brand franchises. The Northwood acquisition will add 86 franchised offices in various locations around the UK.
“I am pleased to say that this will position the group as the largest property franchise in the UK with more than 54,000 managed properties and a total of 301 outlets.
“When we floated on the London Stock Exchange in 2012 we made a clear promise to our network and to our investors that we would reach 200 offices before the end of 2016. Having achieved 300+ offices by June 2016, we are well ahead of our target.”
Last year Belvoir bought Goodchilds and Newton Fallowell brands and Gonsalves said: “Over the last 12 months Belvoir has demonstrated that it is possible to operate a successful multi-brand strategy with effectively a “glass wall” between each brand and, of course, separate management and support teams.
“It’s clear to everyone that our industry is evolving around us and we have chosen to be at the forefront of consolidation in our sector, which over time, will bring numerous benefits and provide underlying strength to our Group. Our enlarged network means we’re in a far better position to face competitive changes in our marketplace in the future, and capitalise on opportunities as the industry evolves.
“In addition to our recent acquisitions of existing franchise networks, we have worked extremely hard to put our franchise owners forward as credible, well-prepared and well-funded acquisition buyers in their local territories. As a franchisor, we will continue to do the same when strategic opportunities present themselves.
“Our pipeline of franchisee-led acquisitions remains strong and several new acquisitions are due to complete in the next few weeks, bringing second and even third offices to those Belvoir franchise owners who have been actively pursuing their own acquisition strategy.
“To survive and thrive in our market, and to further enhance our collective brands locally and nationally, we must continue to explore new frontiers. The Northwood acquisition is a prime example of our commitment to this.
“I am delighted to confirm that Gemma Goodson, chief executive of Northwood, will be remaining in her role, as will managing director Eric Walker. Their invaluable input will provide continuity and a wealth of experience that will help to ensure the success of this new partnership.”
What a delight to read some positive industry news that is based on substance rather than fluff and hype! This is a strong and meaningful ‘old school acquisition where quality people come together to do good. This is significant! Well done to all involved.
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Northwood seems to have stagnated since Nick Cooper’s stewardship.
I remember when we started out in 2013 they had 85 branches and they haven’t been able to expand since then.
In view of this, this takeover makes perfect sense and Northwood have got a reasonable price for a private sale.
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Think Northwood have a better reputation than ewemove …. People in glass houses….
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I’ve made no comment about Northwood’s reputation. Nick built a brilliant business. I was simply making a factual comment that in 3 years that have not grown their network. Belvoir have. In that context, the acquisition makes sense for both sides.
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When you use words like “Stagnate” you are pulling their reputation into it in my opinion.
Maybe they just have a more strict guideline on who can operate a franchise compared to others who allow people working from the spare bedroom.
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IMHO Glenn is not far wrong…
If a company has not increased in size in three years (just going on Glenn’ statement) then the assumption that they have stagnated is a fair one. Does that stain their reputation? In my opinion no,but considering most other companies of a similar size have grown, then it does question their ambition.
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70 odd million pounds group turnover and over 80 offices …… If only my company was stagnating that poorly!
I think you need to also look back at what happened in 2013 and why maybe it was more about building on the company they had as opposed to expanding it.
But i do believe its great business for both sides.
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I know their guidelines. We recruited their former Franchise Development Manager.
And we only take on a very small % of the 5,000+ people who enquire every year for our business.
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I would love to see the figures in full Glenn.
Saying you only recruit a small % of people that enquire is a good spin.
Many may enquire and do the diligence and decide your option is not for them.
I very much doubt you turn many franchise wannabes away if they have the money required and the area they look to work in is free.
I have thousands of buyers every year that register with me but after the vetting only a small % go onto purchase through us. Is that down to my screening or down to supply and demand …..
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Hi Smile,
I’m happy to share the figures with you on a video call. We regularly turn people down who have the funds and want to proceed.
Some of our rejections now work with other property franchises and we wish them every success and hope they prove us wrong.
Please email me at glenn@ewemove.com to set up the call.
I look forward to speaking to you then.
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Mr Ackroyd seems to be setting himself up as some sort of spokesman for the industry with frequent comments on matters of the day. With Ewemove showing around 250 properties available nationally on RM, shared amongst some 80 odd alleged franchises, respectfully suggest he might be better served looking at his own business and not spare us his thoughts on others.
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You need to add up all the branches. We have 1,131 houses listed. 619 for sale, 394 sale agreed. 63 lets, and 55 let agreed.
Regarding ‘alleged franchisees’, all of our franchisees are on our website. Feel free to give any of them a call.
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Wouldn’t get too excited. Sorry for underestimating but even on your figures that gives each franchise circa 8 for sale and 5 sales. I refer to my previous post !
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No problem. We have property management as well – we bring on circa 75 new houses each month which are not in these figures – and many of our franchisees are in their first year so they are still building their businesses.
And because most of our franchisees don’t have offices, they are not saddled with the overheads of traditional agents, so our model is much leaner.
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We are delighted with the deal. Glenn, comments noted but respectfully your numbers are wrong and you don’t know how much the business has grown. Also, we have never had a Franchise Development Manager – but hey. Growth is measured in many ways, not solely by the number of people you sign up. Nevertheless, it’s great news and we are delighted to have found such synergy in our friends at Belvoir!
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He must have worked for another Northwood GB 🙂
https://uk.linkedin.com/in/paul-sheard-8981aba
I hope all goes well with the larger group.
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Who writes a LinkedIn profile? Not the employer… just a thought.
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Looks like your referencing was below par Glenn. Same checks made on your franchises? Lol
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Brilliant acquisition Eric, well done makes sense on every level for both parties. Not entirely sure why people making assumptions on previous Growth of Northwood? number of locations is not the only indicator of growth. Market share, turnover, profit, coverage may well all have been in a growth pattern. Purely counting number of offices is a naive way to assess a companies growth pattern and empire building by that measure is rather egotistical to say the least. Give me one office turning over 2 million Pounds over 4 doing 500k all day long.
good luck to the teams at both Belovoir and Northwoods a real powerhouse to be reckoned with but lots of hard work ahead to intergrate and merge cultures and process,
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