Marcus & Millichap Readies for a New Chapter, Files for IPO

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Revenues and net income were $385.7 million and $27.9 million, respectively, for the year ending Dec. 31, 2012, compared to $274.7 million and $13.5 million, respectively, in 2011.

[contextly_sidebar id=”e59b0cb79cd5acc2a3df56634b8b993c”]George Marcus and William Millichap are slated to keep their positions as directors of the company and will serve as co-chairmen of its board.

Their operating company, Marcus & Millichap Real Estate Investment Services Inc., was incorporated in 1976 and is a majority owned subsidiary of Marcus & Millichap Company. That company will be affected by the spin-off and reorganization taking place for the filing “In preparation for the spin-off of its real estate investment services business, or the Spin-Off, MMC formed Marcus & Millichap, Inc., or Marcus & Millichap, in June 2013,” the company noted in its Form S-1.

“There are a number of companies that are under the Marcus & Millichap umbrella or are related to Marcus & Millichap,” McKenzie explained. Those relationships will likely be simplified if the IPO is successful.

Other potential changes are less predictable. McKenzie was reminded of the IPO of commercial real estate giant CBRE in June of 2004 where the organization became more “institutional” but remained largely the same.

“It was great for investors, great for the company, but from a customer standpoint, it didn’t really change anything,” McKenzie said. “In terms of the services they provided, I haven’t noticed any changes from it now being public versus when they were private. I would assume that Marcus & Millichap is going to be similar.”

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