Builder and Developer Magazine: Trends in Mergers and Acquisitions, and Capital Raising for Homebuilders

Though we are 10+ years into this recovery, and housing starts are still closer to trough levels than peak, it is clear that the market is slowing overall. House price appreciation has stalled while costs still rise, and the lack of availability of skilled labor has made it more difficult for private builders to compete. At the same time, national builders are leveraging their lower cost of capital to drive accelerated growth and take market share by buying smaller builders; other consolidators include the Japanese housing companies and Clayton Homes, which have also been active buyers of late. As rates start to rise, housing affordability will be even more constrained, further crimping sales growth and affordability. Together, all these factors have led to an increase in Mergers and Acquisitions (M&A) as the public builders look to supplement their organic growth with acquisitions of attractive private builders.

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Margaret Whelan
Shell Shock Absorber: One Way to Cut Lumber Waste, Secure Framing, and Deliver on Time and On Budget

Raney's plans currently call for expansion--he's currently running at a shift-and-a-half capacity at his Orlando factory facilities--with a new Florida plant coming online in the next 12 months, and a move into the Texas market within a 24-month time frame. All of this expansion momentum will draw, Raney believes, from a capital raise effort he's now in the home stretch of, thanks to the financial strategic guidance of Margaret Whelan, CEO and founder of Whelan Advisory, LLC.

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Margaret Whelan
With construction workers scarce, homebuilders turn to robots, software

A new generation of prefabricated housing that bears little resemblance to the modular homes of old is among several technologies homebuilders are embracing to cope with the worker shortage. They’re also starting to deploy bricklaying robots and software programs that allow them to avoid miscommunication and delays. 

We’re at a tipping point where it’s finally just gotten too expensive to build the old-fashioned way,” says Margaret Whelan, CEO of Whelan Advisory and an investment banker for the home building industry.

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Margaret Whelan
Builder: Inside Entekra's Innovative Framing Process

Early one morning in August, veteran California carpenter Patrick Johnson showed up for work with two fellow crewmen of varying experience, Barry McKenna and Benny White, at a site in Northern California’s Eastern Valley.

Three working days later, after starting with nothing in front of them but a bare slab poured level by Merced, Calif.–based Central Valley Concrete and Trucking, the three stood back to look at what they’d accomplished: a fully framed, two-story weather-proofed enclosure for a home that would retail in the low $400s in Stonefield Home’s Mission Village in Los Banos, Calif., 80 miles east southeast of San Jose...

Entekra also engaged Whelan Advisory CEO Margaret Whelan, a leading investment banker to the housing industry, who is leading a capital raise for Entekra that would provide liquidity for two immediately planned factory expansion projects to support the five-year business plan.

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Margaret Whelan
Building Magazine: Change Is Necessary To Propel Housing Forward

...Go to manufacturing environments today, and women on the shop floor and in production management are not rare.

I was on a panel recently at ULI with Margaret Whelan of Whelan Advisory. She noted that Buddy Raney of RCI Construction in Orlando, Fla., employs more women than she’s ever seen on a factory floor, as they deliver their Vertically Integrated Total Solution (VITS) to the national builders in their markets. Raney estimates that VITS reduces the typical framing cycle by 10 days; allowing for their builder customers to close 10% more homes as a result.

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Greg Palmer
Builder Magazine: Why Disruptive Innovation, And Why Now?

George Casey, principal at Stockbridge Associates, Gerard McCaughey, founder and CEO of fully-integrated offsite solution platform Entekra, and capital advisor Margaret Whelan, founder and principal of Whelan Advisory LLC, joined me for an hour to focus on this topic...

Some guess that 2018 and 2019 are going to be pivotal years for the emergence of integrated factory fabrication of major portions of houses prior to assembly on home sites. Many counter that it's still too soon, and that all the focus on Katerra, Clayton, Entekra, Blueprint Robotics, Unity Homes, Buddy Raney Construction, Blokable, Kasita, Blu Homes, and other players in the modular, compontent, panelization, offsite construction models is mostly hype that gets amped up because of current labor capacity anxieties.

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Margaret Whelan
Offsite, On-Site Insight from the Other Side of the Pond

I was honored to join Gerry McCaughey, European construction industry legend and my co-patriot on a research trip to our homeland in Ireland, and then to England and Germany. Having sold Century Homes, Europe’s largest fully integrated offsite solutions (FIOSS) provider to global insulation specialist Kingspan Group PLC in 2005, McCaughey now has his sights set on introducing this well-defined process to the U.S. market through his new venture, Entekra. Headquartered in Ripon, California, Entekra is already operating a manual line at a local factory, from which it started shipping open panel house frames last month.

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Margaret Whelan