JTW Advisors LLC served as the sell-side M&A advisor to Denver, CO based Richfield Homes, LLC in their recent sale of homebuilding assets to Landsea Homes of Colorado LLC.
Will Edgington and Serge Goldberg founded Richfield Homes in 2012 after previously running a successful homebuilding business in Texas. Lisa Wiebelhaus became a co-owner in 2016 and will subsequently serve as Landsea’s Colorado Division President. Over the trailing 12 months, Richfield closed 112 homes across 6 communities generating revenues of over $68 million.
Landsea, a public company and one of the nation’s largest homebuilders, operates in Arizona, Florida, New York, California, and Texas. In 2022, Builder Magazine recognized Landsea as Builder of the Year. The acquisition of Richfield expands Landsea’s footprint into Colorado.
“We are proud to serve as Richfield Homes’ exclusive financial advisor for this transaction,” said Chris Jasinski, CEO & Managing Partner of JTW Advisors. “The Colorado front range is the 7th largest single family homebuilding market in the U.S. supported by strong job growth, an expanding population, and an appealing lifestyle. Richfield Homes’ healthy land position and quality, experienced team presented a golden opportunity for Landsea to enter the Denver market.”
Mr. Jasinski believes we have entered a period of increased homebuilder M&A activity as evidenced by this transaction between Landsea and Richfield. Well-run private builders with strong management teams and robust land positions should continue to attract attention from larger builders with greater access to capital, especially as capital becomes scarcer and more expensive in the current interest rate and lending environment. This creates attractive opportunities for private builders to consider strategic alternatives, including selling or recapitalizing their companies.
“This acquisition exemplifies the ongoing evolution within the homebuilding industry. Larger balance sheets provide opportunities for growth and increased margins,” Mr. Jasinski said. “Within the dynamic landscape of mergers and acquisitions, it’s evident that quality companies, distinguished by exceptional management teams, healthy profit margins, and strategically robust land holdings in sought-after markets, hold a strong allure for a wide array of potential buyers.”
