Proptech expert heavily criticises merger of easyProperty and Guild

first_imgHome » News » Associations & Bodies » Proptech expert heavily criticises merger of easyProperty and Guild previous nextAssociations & BodiesProptech expert heavily criticises merger of easyProperty and GuildJames Dearsley says he believes it has not been thought through and is a “knee jerk” reaction.Nigel Lewis23rd June 20171 Comment1,863 Views Leading proptech consultant James Dearsley (pictured, below) says he doubts the Guild of Property Professionals merger with online agent easyProperty will deliver the result that the two organisations are hoping for.The key plank of his criticism is that EastProperty has yet to gain the market traction needed to prove that it can work, and that therefore the merger deal is an “enormous risk” for the Guild.Last week it was announced that GPEA, the parent company of the Guild and Fine & Country, was to merge with easyProperty backed by £15 million from venture capital firm Toscafund Asset Management LLP.It was said that the deal would provide independent agents with the option to access easyProperty’s fixed-price sales and lettings packages through a monthly brand and technology licence.The deal creates a new structure for the soon-to-be merged businesses which will all be under an umbrella PLC called e-Prop Services, headed up by former GPEA CEO and industry veteran Jon Cooke.The key focus of the new entity, it says, is to offer sales and lettings services to consumers across the entire market including high end via Fine & Country to mass-market budget vendors via easyProperty.Digital transformationIn a highly critical blog James says the deal is unlikely to deliver the digital transformation that the guild hopes for or help EasyProperty improve its balance sheet.He also calls the deal “one of the worst knee-jerk reaction response by a traditional firm to the threat of digital transformation”.After canvassing industry sentiment, James says he found it varied from “super excited” to “very disappointed” and that some Guild members may be confused by the deal, given articles on the Guild website recently extolling the virtues of traditional agents over online ones, and easyProperty’s ‘funeral for estate agents’ advertising (see right).But the proptech blogger, who recently criticised Rightmove for its strategy as well, also says the Guild should be applauded for “trying something innovative” and that digital transformation is “about evolving a business model, and the Guild seem to be doing this”.James also says that if the deal does succeed, it will be down the steady hand of Guild board director Jon Cooke, who recently stepped down as Group CEO of the Guild/Fine & Country in April after just seven months in the role. James Dearsley easyProperty June 23, 2017Nigel LewisOne commentSheila Manchester, The Negotiator The Negotiator 23rd June 2017 at 4:38 pmAm I alone in thinking that it is up to The Guild and easyProperty to decide whether their proposed arrangement is right for them?It’s all good fun blogging, but when does blogging become manipulative, negative and unfair?The Guild has very experienced, intelligent, successful and conscientious leaders and equally strong members. I’d say it’s their place to comment, rather than Mr Dearsley’s.Log in to ReplyWhat’s your opinion? Cancel replyYou must be logged in to post a comment.Please note: This is a site for professional discussion. Comments will carry your full name and company.This site uses Akismet to reduce spam. Learn how your comment data is processed.Related articles Letting agent fined £11,500 over unlicenced rent-to-rent HMO3rd May 2021 BREAKING: Evictions paperwork must now include ‘breathing space’ scheme details30th April 2021 City dwellers most satisfied with where they live30th April 2021last_img

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