Housing Giants - January 15, 2009 - (Page 7) m&a 5. Start looking for capital before you’re brain dead. Definition of ready: you have at least 6–12 months of operating capital on your balance sheet or available from house closings. I receive 10 calls a week from builder-developers, 4–6 who waited too long to start the search and don’t have the wherewithal to make it through an arduous 4–6 month marriage process. Investors are interested in builders who are going to be able to survive and not those builders whose capital and credits have run out. The exception to that rule is if you think you may need to file a Voluntary Chapter 11 Bankruptcy petition with a plan of reorganization simultaneously and are looking for DIP (debtor in possession) and exit financing to come out the other side. 6. be prepared for rejection. You might have to talk with 8–10 funds until you find the right one that is interested in funding your capital requirements. Keep a stiff upper lip and keep plugging and asking until you hopefully get the right answer. 7. if you are faint of heart, don’t enjoy dialing for dollarS or can’t handle rejection, hire an expert conSultant that haS exiSting Sourcing arrangementS with multiple fundS. Don’t be afraid to spend some money to try to save your business, projects and yourself. I have often gasped at how foolish builder-developers are when it comes to using professional help they have to pay for to try to save limited cash resources. It sometimes seems that they are willing to sit around and watch their enterprises crater rather than pay someone to help them get to the finish line. Good luck and good hunting! I will be happy to answer e-mail questions directed to mike.kahn@michaelpkahn.com. HG Michael P. Kahn is president of Michael P. Kahn & Associates, a financial advisory firm specializing in housing industry mergers, acquisitions and capital formation. 07 1.15.09 HOUSING GIANTS www.HousingGiants.com http://www.buildersauctioncompany.com http://www.mpka.com/Home.aspx http://www.buildersauctioncompany.com http://www.HousingGiants.com
Table of Contents Feed for the Digital Edition of Housing Giants - January 15, 2009 Housing Giants - January 15, 2009 Contents Viewpoint News & Moves M&A The New Administration Housing Giants - January 15, 2009 Housing Giants - January 15, 2009 - Housing Giants - January 15, 2009 (Page Cover1) Housing Giants - January 15, 2009 - Contents (Page 2) Housing Giants - January 15, 2009 - Viewpoint (Page 3) Housing Giants - January 15, 2009 - News & Moves (Page 4) Housing Giants - January 15, 2009 - News & Moves (Page 5) Housing Giants - January 15, 2009 - M&A (Page 6) Housing Giants - January 15, 2009 - M&A (Page 7) Housing Giants - January 15, 2009 - The New Administration (Page 8) Housing Giants - January 15, 2009 - The New Administration (Page 9) Housing Giants - January 15, 2009 - The New Administration (Page 10) Housing Giants - January 15, 2009 - The New Administration (Page 11) Housing Giants - January 15, 2009 - The New Administration (Page 12) Housing Giants - January 15, 2009 - The New Administration (Page 13) Housing Giants - January 15, 2009 - The New Administration (Page 14)
For optimal viewing of this digital publication, please enable JavaScript and then refresh the page. If you would like to try to load the digital publication without using Flash Player detection, please click here.