Case Studies

Largest Private Builder Sale of the Decade

M&A Advisory

BAG served as the exclusive advisor to Chesmar Homes in its sale to Sekisui House
- Originally formed in 2005, Chesmar emerged in the Houston metro area as a leading entry-level and move-up homebuilder
- Today, the company is one of the country’s largest private builders, closing 2,000 units annually across the core Texas markets
The company received strong interest from a wide array of buyers, including foreign investors and public builders
- BAG worked with Chesmar CEO, Don Klein, to ensure that the acquirer had strong alignment in company values and high regard for Chesmar’s existing employees and customers
This transaction gives Sekisui a substantial presence in the Texas markets and adds a top-tier builder to its expanding U.S. homebuilder portfolio
Don Klein said about BAG: “Tony has a unique ability to be there in every moment – anticipated or not – when you need him. He also knows precisely when to step back and let the process go as it's meant to among the principals. That kind of experience and depth of understanding of these big moments is rare.”

M&A Advisory

Tony Avila began his relationship with Bill Orosz back in the early 2000s while preparing Cambridge Homes for sale
In 2005, BAG advised on Cambridge Homes’ sale to K. Hovnanian Homes
- Transaction was a resounding success for both parties
In 2014, BAG began working with Bill and his sons, Matt, Stephen, and Andrew to sell Royal Oak Homes
- After a competitive bidding process, Royal Oak Homes was sold to AV Homes (Now owned by Taylor Morrison)
In 2021, BAG worked with the Orosz team to sell their newest builder, Hanover Family Builders
- The company had a strong land/lot pipeline leading to explosive growth since inception
- The company received bids from a multitude of buyers, including public builders and foreign investors
- After evaluating offers, the company was sold to Landsea Homes

M&A Advisory

Tony Avila began his relationship with MHI back in 1998, working on several initiatives to help the company grow
In 2011, BAG advised on MHI’s acquisition of Wilshire Homes
- Transaction expanded MHI’s footprint into Austin and San Antonio
- Wilshire Homes rebranded as Coventry Homes
In 2021, BAG advised MHI in its sale to Dream Finders Homes
- Transaction significantly expands DFH presence in the core Texas markets and nearly doubles its combined community count to 220
- BAG worked with seller and buyer to structure a creative transaction that accomplished each party’s unique objectives

Capital Raising

Tony Avila began working with MHI via a lending relationship when he was at BofA Securities in 1998
Managed the company’s $25M trust preferred securities issuance in 2005
Advised on the repurchase of the $25M trust preferred securities at a discount in July 2009

IPO

BAG served as coordinator and manager of the company’s IPO in 2013
Priced 9.00 million shares at $11.00/share, plus 1.35 million additional shares as part of over allotment
Best performing builder IPO ever

M&A Advisory

Capital Raising

In 2010 and 2011, BAG raised private corporate and project equity to fuel growth
Strategic advisor on LGI’s initial $200M credit facility, concurrent with IPO
$85M convertible note issuance in 2014
$300M senior note offering in 2018
Improved terms and upsized $850M syndicated credit facility in 2021
$300M senior notes offering in 2021

IPO

BAG served as lead coordinator and manager of the company’s $143M IPO
Interviewed investment banks to place stock and provide equity research coverage post-IPO
DFH IPO generated stock orders in excess of 100 million shares
The IPO was a tremendous success, generating demand for the stock that far exceeded supply

M&A Advisory

The strategic acquisition of H&H provided DFH with dozens of new home communities in North Carolina and access to thousands of lots
Positioned the company well for its upcoming IPO
Served as sell-side advisor in DFH acquisition of Texas-based McGuyer Homebuilders (MHI), the nation’s 17th largest private builder

Capital Raising

Coordinated the selection process for commercial banks to replace DFH’s secured debt with a $450M unsecured revolving credit facility
Served as sole placement agent for $150M convertible preferred stock issuance to finance acquisition of MHI

At the time of sale, Dan Ryan Builders was building communities in six states and closing approximately 1,300 homes annually
Generated significant interest and a competitive bidding process among national public builders, international buyers, and private equity firms
Competing proposals gave the sellers the options of:
- Selling 100% equity interest
- Selling 50% to 60% interest while continuing to run the business
Seller selected Japanese buyer, Sumitomo Forestry America (SFA), as the winning bidder
Dan Ryan continued to run the company for three years, at which point SFA purchased his remaining interest in the company

Shea Homes - North Carolina was delivering homes in 13 communities of the greater Charlotte market
The company had secured a strong land pipeline and healthy backlog of sales in highly-desirable areas of the Charlotte market
The company generated strong gross and pre-tax margins which drove significant demand among the primary group of buyers
- BAG marketed the company to four potential buyers and received aggressive offers from all suitors
- The offers resulted in a variety of structural options and a bidding war that drove up the seller’s premium
BAG was able to maneuver a complicated ownership structure to benefit various owners with different exit objectives
- Two of the four principals retired, while the other two remained as regional executives with an equity interest in the company