BAG Clients & Friends,

This morning, Lennar announced its acquisition of Arkansas-based Rausch Coleman, with the transaction expected to close in Q1 2025. Rausch Coleman, the 21^st largest homebuilder in the nation, has communities across Arkansas, Oklahoma, Alabama, Kansas, Missouri, Texas, and Florida. In 2024, they are projected to deliver around 5,000 entry-level homes. John Rausch has built an incredible team and wonderful company which has accomplished tremendous growth. Lennar is quite prescient in making this acquisition.

With an average sales price of $230,000, the Rausch Coleman acquisition may help Lennar further diversify its product offerings and address affordability challenges in the first-time homebuyer market. Lennar has guided a 10% growth in closings for FY2025, and this acquisition is anticipated to increase their delivery volume by more than 5%.

Lennar plans to structure this deal in a land-light manner, utilizing third-party land bankers, including their new Millrose entity.

We believe that M&A remains the most effective path for builders seeking to grow their community count and controlled land pipeline. We have advised on five builder M&A transactions thus far in 2024. We anticipate additional M&A forthcoming. BAG expects to close two builder M&A transactions by year-end and three in the first quarter of 2025.

If you’d like to discuss capital needs or explore potential sale opportunities, please don’t hesitate to reach out to schedule a meeting.

Best Regards,

Tony Avila

tony@builderadvisorgroup.com

Zach Legge

zach@builderadvisorgroup.com



MERITAGE HOMES ACQUIRED ELLIOTT HOMES

Builder Advisor Group is pleased to announce that it served as the exclusive financial advisor to Elliott Homes (“Elliott”) in the sale to Meritage Homes (“Meritage”). With this transaction, Meritage will acquire over 5,500 lots making for a significant entry into the Gulf Coast markets. Both Elliott and Meritage are well aligned in their strategy with an emphasis on spec builds and affordable entry-level homes.