How does the Prudential sale stack up?

The Canadian franchisor who operates the Real Living network is buying Prudential Real Estate and Relocation Services for $110 million.

When I read that the first thing that struck me was the price.  $110 million?  Really?  For 1,700 offices?  That’s less that $1,000 per franchise!

HFS bought Century 21 in ’96 for $200 million.

They bought Coldwel Banker the same year for $710 million.

Heck, in 2004, they bought Southebys’ 1oo offices for $110 million!

Everybody knows Pru never made a dime on the real estate side of their business and after 20+ years of operation, they have a brand that the consuming public still does not equate with real estate.  But $110 million?  Really?  What am I missing?

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