“Big Bids, Strong Suits” published January 2006 in Big Builder magazine (click here to read entire article)
In this article summarizing the high volume of merger & acquisition transactions that took place in 2005, Jody Kahn Kline reported “This was probably our biggest year, and there are still other transactions in the works.” Associate Peter Hazeloop added “Even if the price of public builder stocks declines, many are likely to continue acquiring. … Because they can pay cash, even if the price is down, it isn’t going to change their plans for growing the company.”
On the brisk pace, Jody added “I think the appetite for acquisitions is increasing. …When talking with prospective builder-clients we hear that the national builders in particular have been in the market looking around. So in addition to what happens through companies like ours, there is a lot of direct contact and it seems the pace is higher.”
Peter commented on a possible slowing in 2006 and the buyers’ search for larger transactions versus entry into smaller markets, saying “It’s just as hard to do a small acquisition as it is to do a large one…they’ll try to acquire smaller builders, if that’s who is available. If it’s a market they really want to get into, they will be more willing to look at smaller deals than they were a few years ago…and I can see that continuing as long as the target is a quality builder in a market where the acquirer wants to be.”