Jamie Perillo, President at American New Homes Group will be a panelist at the IMN Land & Homebuilding Conference in Las Vegas. He spends some time with me discussing his contribution to the panel. Some of the key highlights of the discussion, include:
* “The homebuilding industry is heavily fragmented, lending itself to consolidation and mergers & acquisitions”.
* Over the last 1 1/2 years, during an improving economy, there have been over a dozen announced mergers and acquisitions.
*Private builders have significant disadvantages to larger private and public homebuilders relating to cost of capital
*Homebuilding is a capital intensive industry
This story is a perfect example of the adage, “He who controls the money, controls the outcome.”