Century 21 COO says M&A activity fueled by growing tech demands

Century 21 is riding a wave of franchise acquisitions and merger activity — a trend Chief Operating Officer Greg Sexton says is driven by the escalating demands of real estate technology.

Sexton, who has spent more than two decades with the company, said the aggressive push into mergers and acquisitions (M&A) began as a strategic initiative following the pandemic and has since transformed into a core component of the brand’s identity.

The company has positioned itself to lead an industry-wide consolidation trend that Sexton sees occurring in markets across the country.

One of the most notable shifts, he explained, is that acquisitions are no longer confined to geographic boundaries.

“[Mergers and acquisitions] are now are being done from state to state across the country, meaning you can have a branded company like we have in Wisconsin that ends up doing a large acquisition out in San Diego,” Sexton said. “That would have never occurred years ago, but because of technology, you can have the infrastructure at a hub office that allows you to do M&As throughout the country. Consolidation is happening everywhere.”

Century 21 has completed 16 merger and acquisition deals so far in 2026, following 24 transactions last year — a roughly 40% increase from 2022’s total of 17.

Among the 2026 acquisitions are firms in South Carolina, Illinois, Florida, California, Wisconsin, Arizona and Georgia.

Compass merger brings tech edge

The integration of Century 21 under the Compass International Holdings umbrella following Anywhere Real Estate’s acquisition has played a significant role in the brand’s M&A momentum.

Sexton said the combination has created considerable conversation in the marketplace, particularly around technology — a factor he described as paramount for broker-owners.

“By coming together and having Compass technology that’s [will be] available for our Century 21 agents in the future, it’s made a huge difference,” he said. “It caused us to go out and have those conversations to say, ‘Hey, technology is only going to continue to grow and only going to be more expensive. You need to get with a brand that’s going to be able to provide that.’”

Sexton identified a GCI (gross commission income) threshold for independent brokerages considering affiliation.

“Once you get above $2 million in GCI, it really becomes so important that you have the tools and the resources, the marketing,” he said.

Coaching franchisees through the ‘scary’ M&A process

Sexton emphasized that Century 21 distinguishes itself by immediately training new franchisees on how to pursue their own acquisitions. He said the company has developed a comprehensive coaching program to guide broker-owners through what can be a daunting process.

“We have a whole training course that we put together that takes them through the entire process,” said Sexton. “One of the things that I love about mergers and acquisitions in real estate is that it’s different than any other industry, because you are literally selling something that is an intangible.”

He said conversations often center on helping broker-owners return to the meat and potatoes of the business they enjoy most.

“We talk about going back to doing those things that you love by moving your business to a company that has a great infrastructure,” said Sexton. “It’s about having resources that can do those things that, frankly, you don’t like to do [on your own].”

Broker-owner role evolves beyond production

Sexton said the role of the franchise owner has undergone a fundamental transformation over the past two to three decades. He noted that it is now nearly impossible for broker-owners who are also active producers to successfully grow a company.

“Years ago, the broker-owner was also often a producer and was out there actually driving their own production,” said Sexton. “That meant listing, selling — doing those things that they love to do, while also trying to own and operate a company. That is very rare now, and I would say almost impossible if you’re going to be a successful growing real estate company.

“The demands of owning and operating and providing all those resources and training for your agents requires a full-time job and requires a full-time staff.”

Sexton said the long-term outlook for M&A activity remains robust, — with local brokers increasingly questioning how they can compete.

With technology costs rising, consumer expectations climbing and the gap between small and large players widening, Sexton predicted that the consolidation wave still has considerable room to run.