Housing industry magazines rely on our expertise, including interviews and sometimes our research in their articles. 

Click on these links to read some of the articles:

Michael P. Kahn was quoted in the following recent article:
June 20, 2008 - Earnings Preview: For US Home Builders, More Pain In 2Q
June 26, 2008 - Home Builders Battling New Foreclosures

The Michael P. Kahn & Associates, Inc. team was invited to write a column appearing in the bimonthly magazine, GIANTS.  The following link will allow you to read articles published on the GIANTS website:

Click here to read articles published from April 2006 to February 2007

“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.”

“Big Builders Getting Bigger” published February 1, 2006 in Realty Times [ click here to read entire article ]

Michael Kahn was interviewed in conjunction with his participation on a panel on “consolidation” at the International Builders Show in Orlando.  The article reported “Within the next five to seven years, a single ‘mega-builder’ will cross the 100,000-unit-a-year threshold, believes a financial consultant who has helped create many of the nation's largest home building firms.  But that company -- and other giants like it -- are not likely to reach six-figure territory by growing from within, Michael Kahn of Michael P. Kahn & Associates in Ponte Vedra Beach, Fla.., said at the National Association of Home Builders' annual convention in Orlando last month.

"It's very difficult to grow that large organically," said Kahn, who has a hand in arranging more than half the 150 mergers that have taken place among builders over the past 15 years.



“Power Brokers” published December 2004 in Builder Magazine        
Michael P. Kahn & Associates was ranked 24th among the top 50 Power Brokers affecting the housing industry

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Sold! Now What?” published November 2004 in Builder Magazine



“Graceful Exit” published July 2004 in Big Builder Magazine
(link to free article no longer available; partial text provided)
This article discusses North Carolina builder Ashley Turner's plans to sell his company to his employees. Michael Kahn was interviewed and had numerous comments, including the following:
But homebuilding merger and acquisitions expert Michael Kahn of Michael P. Kahn & Associates, which is based in Ponte Vedra Beach, Fla., disdains ESOPs.  Pension rules govern the plans, and reporting requirements are strict.   Kahn says that "ESOPs are a wonderful way for starting out when everyone's goals are aligned.  But after 15 or 20 years, goals change. "  If an owner wants to cash out of the ESOP before retirement to spend more time with family or pursue a lifelong dream, he or she will pay hefty tax penalties.  Strict ESOP rules also make it tough to sell the company.  Still, Kahn acknowledges that in those rare cases where employees do buy out an owner, most use an ESOP.

Regarding Ashley Turner's valuation approach:
Kahn says he's never seen a valuation done this way.   "The common way is to value the company on the open market and then figure out a mechanism for the employees to buy" he says.  "My hat's off to Ashley Turner, and I hope it works for him.  Most people aren't that nice to their employees.  They're a little more selfish, and that's not necessarily a bad thing."
 

“Dream Weaver” published June 2004 in Builder Magazine
(link to free article no longer available; partial text provided)
For builders considering putting their company on the block, one of those best-known independent brokers is Michael P. Kahn & Associates, a Ponte Vedra Beach, Fla.–based company that arranged 13 home building deals in 2003 and expects to at least double that number this year. According to Kahn, packaging a company for sale usually takes three to four weeks, with another four weeks dedicated to meeting with potential buyers. After a letter of intent is signed between the buyer and seller, 30 to 40 days are allotted for due diligence, eliminating any surprises, and negotiating final agreements. Finalizing the deal requires another 15 to 30 days. Overall, the process takes 90 to 120 days, although deal makers can go into hyper-drive if circumstances require. Kahn completed one transaction in just seven days from the date of a handshake agreement. “That's the fastest deal we've ever done,” he says.