The number and size of acquisitions by Asian buyers, primarily Japanese housing companies, is accelerating. These buyers are deliberate, serious, competitive on valuation, and do not require financing contingencies. Below are our observations drawn from extensive experience working across the table from these companies:

• Demand: The U.S. residential housing market is attractive given the strong underlying growth fundamentals, especially when compared to the declining population in Japan (projected to lose 30% of its population by 2065).

• Supply: U.S. business owners that are ready to exit or have outgrown their available capital sources appreciate the deep pockets, long term focus, and comparatively lower cost of capital offered by overseas investors.

• Win/Win: Many U.S. operators favor selling to a foreign buyer that will maintain their team, preserve their culture, and ensure the continuation of their legacy.

• Structure: Foreign buyers often acquire a controlling position that is less than 100%, allowing the seller to participate in accelerated growth and profit sharing. These conservative buyers maintain low leverage rates to mitigate financial risks for all stakeholders.

• Governance: Post-acquisition, a new board will be established and will typically include the local owners or founders. The board meets regularly to align on growth strategy, risk tolerance, and compensation.

• Business as Usual: Asian buyers, driven by relationships and strong financial backing, are appreciated by the original owners. Feedback from lenders, trade partners, and subcontractors indicates that they see little change post-acquisition.

• Momentum: Asian buyers have acquired 32 U.S. homebuilder or construction service companies since 2013. Whelan Advisory has successfully closed six transactions with three different Asian buyer groups over the last four years, with an additional transaction closing this month.

Since 2018, Whelan Advisory has successfully advised on 30 transactions across the U.S. housing sector, representing over $13.3 billion in volume across M&A, debt, and equity. Please contact us below for a confidential conversation to discuss your company’s growth plans and capital needs: