Housing Giants - July 10, 2008 - (Page 20) m&a By Michael Kahn, Michael P. Kahn & Associates Do You Match up? Are you in upper management? Entering the new world of mergers and acquisitions? Buyers have several questions for you. Since the beginning of 2006, M&A has morphed from complete buyouts by builders to buy-ins by hedge funds and private equity. But the same issues a builder needs to deal with today are the issues a fund will want to discuss when presented a buy-in opportunity. Because there are so many buy-in opportunities around the country, funds will be very selective and will concentrate on those builders who can correctly answer the following questions: 1. Does the senior management team have experience managing through both halves of the housing cycle? Managing successfully through a down cycle requires very different skill sets, and a fund considering investing with you will want to be confident your team has the skills to be successful in both situations. 2. Will the builder have access to the greatly discounted land deals that can position the company to build profitably again — along with good relationships with trades, subs suppliers and former managers — to begin to grow again? 3. Is the senior management team and staff energized and excited to capitalize on opportunities that shake loose during this down cycle? Builders interested in attracting the “new capital” will need to demonstrate a survival mentality given it will most likely be 2010 before absorptions improve and home prices can be increased. 20 hoUSing giAntS.7.10.08 www.hoUSinggiAntS.com http://www.housinggiants.com
Table of Contents Feed for the Digital Edition of Housing Giants - July 10, 2008 Housing Giants - July 10, 2008 Contents Viewpoint News & Moves Tech M&A Critical Management Series Part 1 Housing Giants - July 10, 2008 Housing Giants - July 10, 2008 - Housing Giants - July 10, 2008 (Page 1) Housing Giants - July 10, 2008 - Housing Giants - July 10, 2008 (Page 2) Housing Giants - July 10, 2008 - Housing Giants - July 10, 2008 (Page 3) Housing Giants - July 10, 2008 - Housing Giants - July 10, 2008 (Page 4) Housing Giants - July 10, 2008 - Contents (Page 5) Housing Giants - July 10, 2008 - Contents (Page 6) Housing Giants - July 10, 2008 - Viewpoint (Page 7) Housing Giants - July 10, 2008 - Viewpoint (Page 8) Housing Giants - July 10, 2008 - Viewpoint (Page 9) Housing Giants - July 10, 2008 - News & Moves (Page 10) Housing Giants - July 10, 2008 - News & Moves (Page 11) Housing Giants - July 10, 2008 - News & Moves (Page 12) Housing Giants - July 10, 2008 - News & Moves (Page 13) Housing Giants - July 10, 2008 - News & Moves (Page 14) Housing Giants - July 10, 2008 - News & Moves (Page 15) Housing Giants - July 10, 2008 - Tech (Page 16) Housing Giants - July 10, 2008 - Tech (Page 17) Housing Giants - July 10, 2008 - Tech (Page 18) Housing Giants - July 10, 2008 - Tech (Page 19) Housing Giants - July 10, 2008 - M&A (Page 20) Housing Giants - July 10, 2008 - M&A (Page 21) Housing Giants - July 10, 2008 - M&A (Page 22) Housing Giants - July 10, 2008 - M&A (Page 23) Housing Giants - July 10, 2008 - Critical Management Series Part 1 (Page 24) Housing Giants - July 10, 2008 - Critical Management Series Part 1 (Page 25) Housing Giants - July 10, 2008 - Critical Management Series Part 1 (Page 26) Housing Giants - July 10, 2008 - Critical Management Series Part 1 (Page 27) Housing Giants - July 10, 2008 - Critical Management Series Part 1 (Page 28) Housing Giants - July 10, 2008 - Critical Management Series Part 1 (Page 29) Housing Giants - July 10, 2008 - Critical Management Series Part 1 (Page 30) Housing Giants - July 10, 2008 - Critical Management Series Part 1 (Page 31) Housing Giants - July 10, 2008 - Critical Management Series Part 1 (Page 32) Housing Giants - July 10, 2008 - Critical Management Series Part 1 (Page 33) Housing Giants - July 10, 2008 - Critical Management Series Part 1 (Page 34)
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