Berkshire Hathaway Acquires Taylor Morrison for $8.5 Billion
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 53 minutes ago
0mins
Source: seekingalpha
- Significant Transaction Size: Berkshire Hathaway has agreed to acquire Taylor Morrison in an all-cash deal valued at approximately $8.5 billion, with a purchase price of $72.50 per share representing a 24% premium over the closing price of $58.50 on May 29, reflecting confidence in the U.S. housing market.
- Shareholder Benefits: The transaction offers immediate cash premiums to Taylor Morrison shareholders while eliminating exposure to cyclical risks in the homebuilding sector, with the deal expected to close in the second half of 2026, pending shareholder approval and regulatory clearances.
- Market Expansion Potential: As one of the largest U.S. homebuilders operating over 350 communities across 21 markets in 12 states, the acquisition will enhance Berkshire's positioning in housing-related businesses, further integrating its existing building products companies.
- Stable Management Team: Post-acquisition, Taylor Morrison will continue to be led by its current management team, with CEO Sheryl Palmer stating that the financial backing from Berkshire will enable the company to pursue its growth plans more effectively.
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Analyst Views on TMHC
Wall Street analysts forecast TMHC stock price to rise
5 Analyst Rating
5 Buy
0 Hold
0 Sell
Strong Buy
Current: 58.730
Low
62.00
Averages
74.80
High
95.00
Current: 58.730
Low
62.00
Averages
74.80
High
95.00
About TMHC
Taylor Morrison Home Corporation is a homebuilder and developer. The Company's principal business is residential homebuilding and the development of lifestyle communities with operations across 12 states. The Company provides an assortment of homes across a range of price points to appeal to an array of consumer groups. It designs, builds and sells single and multi-family detached and attached homes in traditionally high growth markets for entry level, move-up, and resort lifestyle buyers. It operates under various brand names, including Taylor Morrison, Darling Homes Collection by Taylor Morrison, and Esplanade. It also has a Build-to-Rent homebuilding business which operates under the Yardly brand name. It owns and operates commercial space, retail, and multi-family properties under the Urban Form brand name. The Company, through its subsidiaries, provides financial services and title services. The Company, through its insurance agency, provides homeowner’s insurance policies.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Berkshire Hathaway Acquires Taylor Morrison for $72.50 per Share
- Acquisition Overview: Berkshire Hathaway is acquiring Taylor Morrison for $72.50 per share in cash, representing a total equity value of approximately $6.8 billion and an enterprise value of about $8.5 billion, with the acquisition price reflecting a 24% premium over the latest closing price, providing significant and certain value for shareholders.
- Strategic Growth Opportunity: This acquisition presents an attractive opportunity for Taylor Morrison's team members and partners to continue their growth trajectory, leveraging Berkshire's capital strength and long-term investment philosophy to propel the company into its next exciting chapter.
- Management Continuity: Upon completion of the acquisition, Taylor Morrison will continue to be led by its existing management team, including CEO Sheryl Palmer, ensuring stability and ongoing development during the transition period.
- Market Positioning and Brand Value: Taylor Morrison operates over 350 communities across the U.S., catering to a diverse range of homebuyers; this acquisition will further enhance Berkshire's positioning in the housing market and strengthen its influence in the residential construction sector.
See More
Berkshire Hathaway Acquires Taylor Morrison for $8.5 Billion
- Significant Transaction Size: Berkshire Hathaway has agreed to acquire Taylor Morrison in an all-cash deal valued at approximately $8.5 billion, with a purchase price of $72.50 per share representing a 24% premium over the closing price of $58.50 on May 29, reflecting confidence in the U.S. housing market.
- Shareholder Benefits: The transaction offers immediate cash premiums to Taylor Morrison shareholders while eliminating exposure to cyclical risks in the homebuilding sector, with the deal expected to close in the second half of 2026, pending shareholder approval and regulatory clearances.
- Market Expansion Potential: As one of the largest U.S. homebuilders operating over 350 communities across 21 markets in 12 states, the acquisition will enhance Berkshire's positioning in housing-related businesses, further integrating its existing building products companies.
- Stable Management Team: Post-acquisition, Taylor Morrison will continue to be led by its current management team, with CEO Sheryl Palmer stating that the financial backing from Berkshire will enable the company to pursue its growth plans more effectively.
See More
Greg Abel's First Major Deal as CEO After Succeeding Warren Buffett
- Leadership Transition: Greg Abel's appointment as CEO in January marks a significant leadership change, and this deal represents his first major move, demonstrating his decision-making capabilities in steering the company's strategic direction.
- Deal Context: This transaction is viewed as a strategic shift under Abel's leadership at Berkshire Hathaway, aimed at further solidifying the company's market position and driving long-term growth.
- Market Reaction: The market exhibits cautious optimism regarding Abel's leadership, with investors hoping he can maintain Buffett's legacy while also introducing new growth opportunities.
- Future Outlook: Under Abel's leadership, Berkshire Hathaway may explore more innovative investment opportunities to adapt to the evolving market landscape and meet shareholder expectations.
See More
Berkshire Hathaway to Acquire Taylor Morrison for $8.5 Billion
- Acquisition Scale: Berkshire Hathaway is set to acquire Taylor Morrison Home Corporation for a total enterprise value of $8.5 billion, which is expected to significantly enhance its positioning in the real estate market and provide stable cash flow and long-term returns.
- Per Share Purchase Price: The acquisition is priced at $72.50 per common share in cash, representing a total equity value of approximately $6.8 billion for Taylor Morrison, a price that is attractive compared to market expectations and may draw more investor interest in the sector.
- Market Reaction Anticipation: The market generally views this acquisition positively, believing that Berkshire's investment will enhance Taylor Morrison's operational efficiency and potentially drive future growth, further solidifying Berkshire's influence in the construction industry.
- Strategic Implications: Through this acquisition, Berkshire Hathaway not only expands its investment portfolio but also leverages Taylor Morrison's market resources and expertise, enhancing its competitive advantage in the rapidly evolving real estate market.
See More
Berkshire Hathaway to Acquire Taylor Morrison for $72.50 per Share
- Acquisition Agreement: Berkshire Hathaway and Taylor Morrison have reached a definitive agreement for Berkshire to acquire Taylor Morrison at $72.50 per share in cash, representing a total equity value of approximately $6.8 billion, indicating strong market confidence in Taylor Morrison.
- Significant Premium: The acquisition price represents a 24% premium over Taylor Morrison's closing price of $58.50 on May 29, 2026, reflecting Berkshire's recognition of the company's future growth potential and is expected to enhance shareholder value.
- Management Continuity: Following the completion of the acquisition, Taylor Morrison will continue to be led by its existing management team, including CEO Sheryl Palmer, ensuring stability and ongoing development during the transition period.
- Market Expansion Opportunities: This transaction will enable Taylor Morrison to leverage Berkshire's capital strength and long-term investment philosophy to further expand its influence in the U.S. housing market, propelling the company into a new phase of growth.
See More
Taylor Morrison Certified as Great Place to Work for Second Year
- High Employee Satisfaction: With 92% of team members agreeing that Taylor Morrison is a great place to work, significantly above the 57% average for U.S. companies, this reflects the company's exceptional performance in employee experience and culture, enhancing its talent attraction capabilities.
- Consecutive Certification Achievement: As America's Most Trusted® Home Builder, Taylor Morrison has been certified as a Great Place to Work for the second consecutive year, indicating the company's ongoing commitment to employee feedback and cultural development, further solidifying its industry leadership.
- Multiple Accolades: In addition to the Great Place to Work® certification, Taylor Morrison has received several honors, including being listed among Forbes' Most Trusted and Best Companies to Work For, which enhances its brand image and market competitiveness.
- Commitment to Sustainability: The company's long-standing commitment to sustainable operations is highlighted in its annual Sustainability and Belonging Report, demonstrating its proactive approach to environmental and social responsibility, which helps attract consumers who prioritize sustainability.
See More
Berkshire Hathaway Acquires Taylor Morrison for $72.50 per Share
- Acquisition Overview: Berkshire Hathaway is acquiring Taylor Morrison for $72.50 per share in cash, representing a total equity value of approximately $6.8 billion and an enterprise value of about $8.5 billion, with the acquisition price reflecting a 24% premium over the latest closing price, providing significant and certain value for shareholders.
- Strategic Growth Opportunity: This acquisition presents an attractive opportunity for Taylor Morrison's team members and partners to continue their growth trajectory, leveraging Berkshire's capital strength and long-term investment philosophy to propel the company into its next exciting chapter.
- Management Continuity: Upon completion of the acquisition, Taylor Morrison will continue to be led by its existing management team, including CEO Sheryl Palmer, ensuring stability and ongoing development during the transition period.
- Market Positioning and Brand Value: Taylor Morrison operates over 350 communities across the U.S., catering to a diverse range of homebuyers; this acquisition will further enhance Berkshire's positioning in the housing market and strengthen its influence in the residential construction sector.
See More
Berkshire Hathaway Acquires Taylor Morrison for $8.5 Billion
- Significant Transaction Size: Berkshire Hathaway has agreed to acquire Taylor Morrison in an all-cash deal valued at approximately $8.5 billion, with a purchase price of $72.50 per share representing a 24% premium over the closing price of $58.50 on May 29, reflecting confidence in the U.S. housing market.
- Shareholder Benefits: The transaction offers immediate cash premiums to Taylor Morrison shareholders while eliminating exposure to cyclical risks in the homebuilding sector, with the deal expected to close in the second half of 2026, pending shareholder approval and regulatory clearances.
- Market Expansion Potential: As one of the largest U.S. homebuilders operating over 350 communities across 21 markets in 12 states, the acquisition will enhance Berkshire's positioning in housing-related businesses, further integrating its existing building products companies.
- Stable Management Team: Post-acquisition, Taylor Morrison will continue to be led by its current management team, with CEO Sheryl Palmer stating that the financial backing from Berkshire will enable the company to pursue its growth plans more effectively.
See More
Greg Abel's First Major Deal as CEO After Succeeding Warren Buffett
- Leadership Transition: Greg Abel's appointment as CEO in January marks a significant leadership change, and this deal represents his first major move, demonstrating his decision-making capabilities in steering the company's strategic direction.
- Deal Context: This transaction is viewed as a strategic shift under Abel's leadership at Berkshire Hathaway, aimed at further solidifying the company's market position and driving long-term growth.
- Market Reaction: The market exhibits cautious optimism regarding Abel's leadership, with investors hoping he can maintain Buffett's legacy while also introducing new growth opportunities.
- Future Outlook: Under Abel's leadership, Berkshire Hathaway may explore more innovative investment opportunities to adapt to the evolving market landscape and meet shareholder expectations.
See More
Berkshire Hathaway to Acquire Taylor Morrison for $8.5 Billion
- Acquisition Scale: Berkshire Hathaway is set to acquire Taylor Morrison Home Corporation for a total enterprise value of $8.5 billion, which is expected to significantly enhance its positioning in the real estate market and provide stable cash flow and long-term returns.
- Per Share Purchase Price: The acquisition is priced at $72.50 per common share in cash, representing a total equity value of approximately $6.8 billion for Taylor Morrison, a price that is attractive compared to market expectations and may draw more investor interest in the sector.
- Market Reaction Anticipation: The market generally views this acquisition positively, believing that Berkshire's investment will enhance Taylor Morrison's operational efficiency and potentially drive future growth, further solidifying Berkshire's influence in the construction industry.
- Strategic Implications: Through this acquisition, Berkshire Hathaway not only expands its investment portfolio but also leverages Taylor Morrison's market resources and expertise, enhancing its competitive advantage in the rapidly evolving real estate market.
See More
Berkshire Hathaway to Acquire Taylor Morrison for $72.50 per Share
- Acquisition Agreement: Berkshire Hathaway and Taylor Morrison have reached a definitive agreement for Berkshire to acquire Taylor Morrison at $72.50 per share in cash, representing a total equity value of approximately $6.8 billion, indicating strong market confidence in Taylor Morrison.
- Significant Premium: The acquisition price represents a 24% premium over Taylor Morrison's closing price of $58.50 on May 29, 2026, reflecting Berkshire's recognition of the company's future growth potential and is expected to enhance shareholder value.
- Management Continuity: Following the completion of the acquisition, Taylor Morrison will continue to be led by its existing management team, including CEO Sheryl Palmer, ensuring stability and ongoing development during the transition period.
- Market Expansion Opportunities: This transaction will enable Taylor Morrison to leverage Berkshire's capital strength and long-term investment philosophy to further expand its influence in the U.S. housing market, propelling the company into a new phase of growth.
See More
Taylor Morrison Certified as Great Place to Work for Second Year
- High Employee Satisfaction: With 92% of team members agreeing that Taylor Morrison is a great place to work, significantly above the 57% average for U.S. companies, this reflects the company's exceptional performance in employee experience and culture, enhancing its talent attraction capabilities.
- Consecutive Certification Achievement: As America's Most Trusted® Home Builder, Taylor Morrison has been certified as a Great Place to Work for the second consecutive year, indicating the company's ongoing commitment to employee feedback and cultural development, further solidifying its industry leadership.
- Multiple Accolades: In addition to the Great Place to Work® certification, Taylor Morrison has received several honors, including being listed among Forbes' Most Trusted and Best Companies to Work For, which enhances its brand image and market competitiveness.
- Commitment to Sustainability: The company's long-standing commitment to sustainable operations is highlighted in its annual Sustainability and Belonging Report, demonstrating its proactive approach to environmental and social responsibility, which helps attract consumers who prioritize sustainability.
See More
