Thomas Cook

16th September 2019

Is Bovis buying part of Galliford Try the first of many acquisitions in the House Building industry

Bovis Homes, one of the UK’s leading House Builders has revived talks to buy Galliford Try’s housing business. Previous talks had fallen flat in May, but this latest, revised proposal is £25million higher and offers Galliford shareholders a ‘large chunk of cash’.

The Plimsoll Analysis on the House Builders market shows a sharp slump in profitability in 2019 - after an increase each consecutive year since 2015. More concerning for the market, growth in the industry has been in decline since 2016.

We have seen in other industries struggling for growth, that a wave of acquisitions is needed to clear the air and unlock increased sales and market share. This could well be the strategy that Bovis Homes have in mind, in order to maintain their strength in the industry through these difficult times.

There isn’t an exact science to choosing acquisition targets. However, Plimsoll’s attractiveness rating system instantly highlights companies that meet a number of metrics. It allows users to filter companies on a number of criteria that typically make for an attractive acquisition opportunity, giving business leaders a head start in the due diligence process.

The criteria used is as follows:

  • High sales growth
  • Low financial rating
  • High gross earnings.
  • Low number of shareholders.
  • Significant difference between current and potential future value.
  • Directors fees represent a high proportion of profits.
  • Average director’s age is high.
  • Privately owned.
  • Low number of shareholders.

If you are looking to increase marketshare in a falling market, or are actively looking for companies to buy, the Plimsoll Analysis allows you to filter companies that match your criteria. Our unique model of analysis highlights the value and an in-depth assessment on the performance of every company that counts in the market. The analysis allows you to filter by size and region to find an acquisition opportunity that is ideal for your business.

6 months access to the Plimsoll Analysis costs just £350 (+VAT) - Click here to visit our dedicated page House Builder market to order today