La Rosa Holdings Corp. recently acquired brokerage franchisee La Rosa Realty CW Properties in Longwood for $1.2 million. The transaction represents the company’s third franchisee  acquisition this year. 

La Rosa Holdings, which went public in an IPO in 2021, has embarked on a roll-up strategy of its franchisees in an effort to reach annual revenues of $100 million by the end of next year. It aims to pick up another nine brokerages over the next six to nine months. 

“We also have other acquisitions in the pipeline that we are actively evaluating,” CEO Joe La Rosa said in a press release. “These acquisitions would contribute to both our top-line and bottom-line growth, as we believe that our current infrastructure is set up to support five times our current agent count.”  

“While we historically operated profitably prior to our IPO in 2021, we believe our projected revenue growth will ensure our return to profitability as an exit run rate in 2024, even after factoring in our new costs and overhead as a public company,” La Rosa added. “In our view, the fact that both our revenue and profitability continue to improve, despite the current market, sets us apart from most other brokerages in the industry — a testament to the strength and scalability of our business model.” 

CW Properties provides residential and commercial real estate brokerage services, as well as coaching and support services to agents on a fee basis. It generated $3.4 million in revenue and positive net income in 2022. Its acquisition was satisfied by the issuance of 714,286 shares of La Rosa Holdings common stock (LRHC) priced at $1.68 per share. LRHC closed at $1.56 per share on Dec. 19. 

La Rosa has brokerages throughout Florida, as well as in California, New York, South Carolina, Georgia and Puerto Rico. It works in five real estate segments, including commercial and residential brokerage services, franchising, brokerage education and coaching and property management.