EXCLUSIVE: La Rosa Expands With Jacksonville Franchise Acquisition, Reiterates $100M Revenue Run Rate Goal
Portfolio Pulse from Anusuya Lahiri
La Rosa Holdings Corp (NASDAQ:LRHC) has acquired La Rosa Realty North Florida LLC, a franchisee in Jacksonville, Florida. Realty North Florida generated $4.3 million in revenue and positive cash flow in 2022, excluding executive management costs. The acquisition is part of La Rosa's roll-up strategy to consolidate market position and create shareholder value. CEO Joe La Rosa aims to reach a $100 million annualized revenue run rate by the end of 2024. LRHC shares dropped 1.97% in premarket trading.
January 04, 2024 | 1:45 pm
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La Rosa Holdings Corp acquired its Jacksonville franchise, Realty North Florida, which had a revenue of $4.3 million in 2022. The company is on track to achieve a $100 million revenue run rate by 2024, but its stock price fell 1.97% premarket.
The acquisition of Realty North Florida is directly relevant to La Rosa Holdings Corp as it is a strategic move to increase revenue and consolidate market position. The short-term stock price impact is negative, as indicated by the premarket drop of 1.97%. This could be due to market skepticism about the acquisition or concerns about integration costs. However, the long-term goal of reaching a $100 million revenue run rate could be positive if the company successfully integrates the franchisee and continues its growth trajectory.
CONFIDENCE 85
IMPORTANCE 75
RELEVANCE 100