National Housing Market Outlook

M&A Heating Up

Don Walker Headshot

Don Walker

April 3, 2017

2017 is shaping up to be a big year for acquisitions. We have been very busy helping both buyers and sellers with their market due diligence and cash flow forecasting for multiple recapitalization, IPO, and M&A transactions that have already been announced. And our investment banking friends tell us to expect more.

Why?

2017 has become a great market for both buyers and sellers:

  • Buyers. Overseas buyers with a long-term vision see better risk-adjusted growth prospects in the US than in their own countries. They also recognize an opportunity for asset and market diversification. Additionally, many well-capitalized builders perceive an opportunity for growth in new and existing markets. Finally, select private equity groups are also taking advantage of what appears to be a shortage of moderate-risk capital for private home builders and land developers.
  • Sellers. Many investments made near the bottom of the market in 2011–2013 have matured to the point where sellers are now motivated to monetize their investments. Few intended to hold for a long time, so the time is right. Additionally, several privately held builders poised for growth need the infusion of capital to fuel their expansion opportunities.

The timing of these opportunities should make for a busy year.

Opportunity

Over the past 15 years, 11% of our revenue has come from large portfolios of entity-level capital raises and acquisitions. We typically provide a fixed-fee, independent opinion on the market potential and asset values and maintain our independence with a strict policy against participating in the proceeds of any transaction. Our policies have earned us Integrity Research’s Compliance Accreditation five years in a row.

With the number of M&A and large recapitalization transactions expected to increase, we are looking for more great people. If you know of someone who is an expert at conducting the highest-quality market research and financial/cash flow analysis possible in a very short time period, please reach out to me on LinkedIn

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About The Author

Don Walker Headshot
Don Walker
Managing Principal
Don has 30+ years of experience in real estate finance and operations, including running a Top 40 homebuilder, and uses this experience to help clients make informed, strategic investment decisions in real estate. Don is passionate about build-to-rent, product and community planning, builder/developer M&A, and property and company valuations.

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