November 18, 2022
Selling Your Home Building Company? Here’s What to Expect
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Chris Jasinski and Ken McWilliams discuss the essential steps for buying and selling private home building companies in an article published in Pro Builder on November 18, 2022. Jasinski and McWilliams say that buying and selling a private home building company follows a similar format to mergers and acquisitions (M&A) in other industries, and the process can be broken down into three stages.
“Valuation and deal preparation in the M&A process takes about 45 days total,” Jasinski and McWilliams explain. “During that period, you as the seller have some work to do, such as providing detailed corporate and asset financial histories and projections. If you’ve hired an advisor, they will perform a financial valuation, then discuss with you the valuation range and terms you can expect to receive.”
Jasinski and McWilliams further discuss the marketing and bidding phase where bids are evaluated, pricing is negotiated and major deal terms are defined.
“We strongly push sellers to invest time and energy in the front-end deal prep stage so all of the diligence information is available and complete throughout the M&A process, which helps to facilitate a successful transaction for all parties in the deal.”
Read the full article on Pro Builder here.
November 16, 2022
How Much Is Your Home Building Company Worth?
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In an article published in Pro Builder on November 16, 2022, authors Chris Jasinski and Ken McWilliams discuss the qualitative and quantitative factors that affect the price buyers are willing to pay when a private home builder sells their company.
“As a seller, you want to attract as many qualified bidders as possible,” Jasinski and McWilliams explain. “Multiple bidders create competitive tension that typically results in increased valuations and better transaction terms for you.”
Jasinski and McWilliams discuss some of the key attributes of businesses that will increase demand. Additionally, they mention that after evaluating qualitative aspects of business, a potential buyer will use numerous valuation methods to determine the price they are willing to pay.
“A builder’s land inventory is essential in determining the purchase price,” they add. “Finished lots (owned or optioned) are more desirable to buyers than raw land… and buyers pay a premium. Similarly, the majority of buyers prefer finished lot takedown deals to self-development deals.”
To read the full article on Pro Builder, please visit their website here.
August 22, 2022
Home Builder M&A Activity: It’s a Seller’s Market
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In an article published on August 22, 2022 by ProBuilder magazine, JTW Advisors Managing Partner and Co-Founder Chris Jasinski outlines current market factors in the homebuilding industry that have resulted in a seller’s market for owners looking to sell their businesses. The article examines five current market trends in detail, specifically citing stagnant organic growth due to market conditions; expanded network of potential buyers, including foreign builders; the importance of company size to increase profits and efficiency; the need for expansion into new markets; and the consolidation of resources (including available land, employees, vendors and customers) in both primary and secondary markets. Jasinski emphasizes that private builders currently have a profitable window of opportunity to sell their business thanks to these market dynamics.
For the full article, please click here.
June 1, 2022
JTW Advisors Advises Executive Construction Homes in Sale to Lennar
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The Mecklenburg Times published an article on June 1st highlighting the acquisition of Executive Construction Homes, LLC by Lennar. JTW Advisors served as the financial advisor to Executive in its sale to Lennar.
Chris Jasinski, CEO & managing partner of JTW Advisors is quoted ”As the Southeast region continues to be a hot market for new development borne out of relocation trends, this deal speaks to the vision that leaders at both companies have to capitalize on growth opportunities and align their strengths to bring new homes to the growing Columbia market.”
For the full article, you may click here.
April 15, 2022
Lennar Buys Executive Construction Homes
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In an article published on April 15, 2022, by Mergers & Acquisitions online, JTW Advisors was noted as sell-side M&A advisor to Executive Construction Homes LLC. Lennar, a home builder, has acquired Executive Construction Homes. The transaction will enable Lennar to expand into the Columbia, S.C. market and allow Lennar to purchase Executive Construction Homes’ land pipeline totaling more than 3,300 lots.
Read the full article here.
April 8, 2022
Lennar Acquires Columbia, South Carolina-based Executive Construction Homes
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In an article published on April 8, 2022, by Builder Online, Chris Jasinski, CEO and managing partner of JTW Advisors, views the transaction between Lennar and Executive Construction Homes as further proof of the current strength in the home building mergers and acquisitions market.
Lennar will expand its portfolio into the Columbia, South Carolina, market with the purchase of Executive Construction Homes’ finished lots and land pipeline totaling more than 3,300 lots. JTW Advisors served as the sell-side advisor to Executive Construction Homes in the sale to Lennar. This is JTW’s second mergers and acquisitions deal in less than three months. The company most recently advised Breland Homes on its sale to Lennar in the Huntsville, Alabama, and Pensacola, Florida, markets.
Read the full article here.
April 8, 2022
Lennar M&A Spree Continues with Buy of Columbia, SC Firm
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In an article published by The Builder’s Daily on April 8th discussing broader trends in the homebuilder M&A market, Chris Jasinski is quoted discussing motivations for both buyers and sellers of private homebuilding companies.
“You’re seeing a period of heightened transaction activity, and now changing conditions mean that activity means more deals will be harvested,” says Jasinski. “The windows of opportunity to sell don’t exist – especially the ones open now – at every part of a housing cycle. So, for sellers – as for buyers, who are mostly angling for land where it’s constrained in a concentrated number of mostly Smile States markets – timing matters.”
Jasinski also discusses the rising attractiveness of secondary and tertiary markets.
“Migration patterns as they’ve begun to define themselves and continue to play out will start to widen a gap between broad national supply and demand, and specific metro, market, and submarket supply and demand, he says. This is what makes Columbia, S.C. – which grew to about $1 billion in homebuilding sales revenue, and expanded by about $200 million in the past 24 months – a hot market now.”
For the full article, you may click here.
March 8, 2022
Big Builders Target Secondary Markets
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CEO Chris Jasinski recently shared his insights on public and foreign homebuilders expanding into previously overlooked secondary markets in response to high consumer demand for housing in small cities and the ongoing need for builders to grow. He notes that with builder targets of 10%-15% annual growth in revenue, profit and closings, builders are turning to smaller markets to feed that growth.
“Despite strong demand for new homes, meeting these projections is increasingly difficult due to a lack of available finished lots. That means big builders can’t simply ramp up production in another market to compensate for weather delays and other closings shortfalls elsewhere. Labor shortages and supply chain problems have exacerbated the situation, slowing cycle times and delaying closings. As a result, public and foreign builders are expanding into new markets through organic growth and M&A activity, searching for more closings, revenue and profit.”
In addition, the interest in secondary markets has been fueled by consumers seeking a lower cost of living, a trend that was rapidly accelerated during the pandemic when workplace flexibility allowed people to live and work anywhere. Further, smaller markets often mean less builder competition, looser terms for available land, and an easier regulatory environment. He cites the city of Columbia, S.C. as a stand-out example of a market benefitting from the trend.
“In 2018 there were only two public builders in Columbia, D.R. Horton and NVR, which held a mere 22% market share against private builders’ 78%. Later that year, Clayton purchased Mungo Homes, and LGI entered organically in 2019. In 2020, our firm advised Essex Homes, which held a 19% market share, on their sale to Stanley-Martin (Japan-based Daiwa House Group). By the end of 2020, public and foreign-owned builders were delivering 64% of Columbia’s new homes, and last year Pulte started acquiring land. As these big builders ramp up, we project their market share to increase. This trend will continue as many secondary markets still dominated by private builders are ripe to repeat Columbia’s experience.”
To read the full article, please click here.
February 17, 2022
Lennar Adds Alabama to Its Footprint, With Breland Purchase
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The Builder’s Daily published an article on February 17th discussing Breland Home’s sale to Lennar.
JTW Advisors served as an advisor in the transaction which closed in December 2021.
For the full article, you may click here.
May 17, 2021
LGI Homes acquires Anoka-based homebuilder R Home
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On May 17, 2021, Minneapolis / St. Paul Business Journal published an article announcing that LGI Homes Inc. acquired R Home in a deal that closed on May 7, 2021.
As R Home is one of the largest locally owned single-family homebuilders in the Minneapolis / St. Paul area, LGI will expand its presence in the Twin Cities with more than 3,000 owned and controlled lots and homes.
“We saw an opportunity and wanted to take advantage while the timing was right. As we sought a buyer, JTW Advisors understood our priorities, found an excellent match in LGI and carried us through the acquisition process seamlessly,” said R Home Owner and CEO Kent Roessler.
For the full article, subscribers may click here.
May 15, 2021
JTW Advisors advises R Home in Sale to LGI Homes
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In an article that was published on May 15, 2021, South Charlotte Weekly highlighted JTW Advisors’ involvement in the acquisition of Minneapolis / St. Paul-based R Home’s homebuilding and land development assets and operations by LGI Homes.
JTW Advisors served as the exclusive financial advisor to R Home in the sale that closed on May 7, 2021.
In addition to this acquisition, JTW Advisors recently served as the financial advisor to Essex Homes in their sale to Stanley Martin Communities, creating one of the top 25 builders in America.
For the full article, you may click here.
April 7, 2020
M&A Lessons Learned for Private Builders and Developers
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In an article published in Builder and Developer Magazine’s April Buyer’s Guide issue, Chris Jasinski discusses lessons learned for private builders and developers from the sale of Essex Homes to Stanley Martin Homes in late February, for which JTW Advisors served as the financial advisor to Essex Homes.
Numerous trends are currently fueling M&A activity in the homebuilding industry, including an increased demand for private builders, an expanded universe of buyers and the continuation of consolidation.
“M&A momentum is supported by strong demand from buyers seeking to rapidly expand their geographic footprint, leverage internal scalability, and boost overall profitability. As consolidation trends continue in the U.S., market competitiveness for quality land, experienced staff and supply chain infrastructure will increase, adding pressure to smaller independent builders,” Jasinski said.
Read the full article on page 22 of Builder and Developer Magazine here.
February 27, 2020
Private Plight: As Finished Lot Supply Shrinks, Deals Appeal as Small Firms’ Only Real Option
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Chris Jasinski was quoted in Builder Magazine on February 27, 2020 discussing the recent acquisition of Essex Homes by Stanley-Martin Communities and the rising M&A trend in the homebuilding industry.
JTW Advisors advised Essex Homes in its sale to Stanley Martin, which closed on February 25, creating one of the top 25 builders in the U.S.
Jasinski believes the time-to-entitle raw Future Lots has become a critical motivator for active buyers in today’s homebuilding M&A market.
“You can’t buy raw land from Farmer Joe or Farmer Mary and get it into the finished developed pipeline for at least three years, for the most part these days,” says Jasinski. “This longer entitlement process–I think–is a factor motivating some of the M&A dynamics we’re seeing.”
For the full article, you may click here.
February 27, 2020
M&A wrap: Coronavirus, Goldman Sachs, Riverside, Paul Hastings, Arsenal, Moonsail, Sycamore, Top PE firms
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Mergers & Acquisitions published the article “M&A wrap: Coronavirus, Goldman Sachs, Riverside, Paul Hastings, Arsenal, Moonsail, Sycamore, Top PE firms” today, which mentioned JTW Advisors for its involvement in the Stanley Martin Homes acquisition of Essex Homes.
You may access the article here.
February 25, 2019
Reston-based Stanley-Martin to acquire Essex Homes
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Virginia Business published an article on February 25 highlighting the acquisition of Essex Homes by Stanley-Martin Communities LLC. JTW Advisors served as the financial advisor to Essex Homes in its sale to Stanley Martin.
Karl Haslinger, CEO of Essex Homes, will become regional president at Stanley Martin and will manage operations in former Essex markets.
For the full article, you may click here.
February 13, 2020
Six Industry Trends That Will Shape 2020 and the New Decade
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In an article published online and in Builder Magazine’s February issue, Chris Jasinski is quoted discussing the rising trend of built-to-rent single-family home communities, which he thinks will continue to shape the homebuilding industry in 2020 and the new decade.
“Single-family rental operators are pursuing build to rent to augment their current practice of purchasing existing single-family homes,” says Jasinski. “New homes require less capital expenditure than existing homes, and institutional investors are treating the new product like a horizontal apartment complex.”
The efficiencies of building single-family rental communities in one location is becoming an attractive aspect of the market, rather than builders and investors buying up multiple homes in different neighborhoods.
For the full article, you may click here.
February 10, 2020
Can the new-house rental market gain steam around intown Atlanta?
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In an article published by Curbed Atlanta on February 10, Chris Jasinski is quoted discussing Atlanta’s rising trend of single-family homes being built for rent.
Historically, single-family homes have been built for the purpose of purchase however, it is expected that single-family rentals (SFR) and build-to-rent (BTR) classes will become more prominent in Atlanta.
“Build-To-Rent is currently a major trend in the SFR industry,” Jasinski said. “Global investors seeking yield in our low-interest rate environment, combined with the appreciation of single family homes making it difficult to find lucrative resale homes to purchase, has pushed SFR operators to begin building their own SFR communities.”
On the supply side, Atlanta is one of the highly demanded markets by SFR owners / operators and BTR builders, according to Jasinski.
For the full article, you may click here.
December 24, 2019
Home-Builder Rally Fueled by Low Interest Rates, Millennials
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Chris Jasinski was quoted in an article published by The Wall Street Journal on Tuesday, December 24 discussing a trend in the homebuilding industry of lower interest rates for U.S. home builders and an increase in the demand for affordable homes with a quicker turnaround time, especially by millennials.
This trend has resulted in large builders making strategic shifts to produce a higher quantity of less-expensive homes. Builders that are focusing on this market are typically seeing more growth than their competitors.
As more companies are trying to meet the demand from entry-level shoppers with lower purchasing power, mergers and acquisitions could continue to rise in 2020.
“Large builders are looking at companies with landholdings that are legally ready to be developed. Such deals are a way to navigate long permitting processes. Increasingly it’s just another land-acquisition vehicle,” Jasinski explained.
For the full article, subscribers may click here.
December 3, 2019
Neighbors, supporters of endangered ‘adorable little plant’ oppose development near TR
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In an article published by Greenville News on December 3, Chris Jasinski is quoted discussing Greenville’s homebuilding industry. The Travelers Rest area is a haven for a rare plant species – the bunched arrowhead – that is disrupting the residential development in this area.
For years, landowners outside Travelers Rest have been pitching subdivisions in this area that would destroy the sensitive land that is keeping the bunched arrowhead alive. Developers have faced increasing regulations and public opposition that is limiting supply of housing and increasing prices.
Now, Travelers Rest developer Craig Roy has a project in process called Crestfield Farm that is less than 1,000 feet from the Blackwell Heritage Preserve, one of the areas of land under preservation, and he argues that he is complying with the strict regulations.
Jasinski noted that Roy’s investment, and the increasingly strict conditions on development he is encountering, are typical across the country, with Greenville being no exception.
To that end, independent developers like Roy are getting rarer, Jasinski said, as home builders nationwide consolidate operations in the ever more difficult pursuit of their primary raw material: land. “In 2009, 15.4% of the revenue from all new home sales in Greenville-Spartanburg came from public builders,” Jasinski continued. “Today, 48.6% of the revenue from new home builders come from publicly traded builders or foreign-owned builders.”
For the full article, subscribers may click here.
December 2, 2019
D.R. Horton outperforming construction industry competitors, analysts report
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In an article published by Dallas Business Journal on December 2, Chris Jasinski is quoted discussing the reasoning behind D.R. Horton Inc. outperforming its construction-industry competitors across multiple metrics.
The homebuilder has undergone multiple recent acquisitions, which has benefitted the company.
“Nationally, they’ve been an acquirer of builders as a strategy to enter new markets, and they’ve done a wonderful job of it,” Jasinski said. “They have a great team that is looking for quality builders.”
For the full article, subscribers may click here.
November 25, 2019
Publicly traded, foreign-owned homebuilders gaining market share in Dallas-Fort Worth
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In an article published by Dallas Business Journal on November 25, Chris Jasinski is quoted discussing the increased market share that publicly traded, foreign-owned homebuilders are gaining in North Texas.
North Texas is the nation’s largest homebuilding market and continues to be sought after by publicly traded and foreign-owned builders not yet in the market. Therefore, big builders are looking to buy out or take controlling interest in established homebuilding companies based in the Dallas-Fort Worth area.
“Traditionally, if you sell your business to another company, it might be because you want to retire or you have some other passion or public service you want to pursue,” Jasinski said. “Now, there’s also a universe of buyers who will allow you to stay involved and run your business, and they will provide capital to help you grow it.”
For sellers, this is a win-win situation because they get more capital to grow their business and are still able to stay on board as a decision-maker.
For the full article, subscribers may click here.
November 21, 2019
Look for more mergers, acquisitions in DFW homebuilding industry, M&A advisor says
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In an article published by Dallas Business Journal on November 21, Chris Jasinski is quoted discussing the rising number of mergers and acquisitions in the homebuilding industry, specifically in the Dallas-Fort Worth (DFW) area.
DFW is one of the biggest homebuilding markets in the nation, with over 100,000 new jobs created a year.
“Barring a major shock to the economy — weather, natural disaster, war — Dallas will continue to create jobs at a robust pace, and builders will do the things that they need to do to maintain and grow market share,” Jasinski said. “It’s a huge market. The market might do over $10 billion in new homes this year. That’s a healthy market and people want to be part of it.”
In the past, M&A activity was usually tied to a strategic decision; however, in an effort to increase market share, land is now the driving factor of many mergers and acquisitions. Public homebuilders are more commonly seeking out these acquisitions as a result of zoning, permitting and land development becoming more complicated and time-consuming.
When bureaucracy and labor shortages extend the time of getting raw land ready for development, one increasingly popular strategy is to acquire a homebuilder with a pipeline of land and partially constructed homes that can deliver immediate revenue and profits, Jasinki said.
For the full article, subscribers may click here.