From Start-Up to Industry Leader: A Homebuilder’s Journey with Bellwether
In the difficult landscape of urban infill development, a portfolio company of a client – an institutional single-family homebuilder – faced a web of challenges. With Bellwether’s support, the company has executed upon a significant growth plan, expanding its footprint and streamlining operations. Within a few years, the company had outperformed growth expectations.
An Ambitious Residential Builder at a Crossroads
Initially, the company was constructing fewer than 50 homes annually, generating $200mm of revenue with a team of under 50. The dynamic homebuilder, armed with vision, was shackled by operational inefficiencies, outdated technology and a team unprepared for massive growth. While eyeing an IPO, its roadmap was blurred by undefined paths for expansion and gaps in financial planning and analysis.
How We Helped
Bellwether Steps In, Aligning Process with Vision
When Bellwether was brought in, we saw more than just challenges; we saw potential waiting to be unlocked. We didn’t just introduce a new underwriting process or optimize their tech infrastructure, we helped reimagine their operational foundation. We oversaw and led the restructuring of the entire C-suite and put talent in the right places to create permanent infrastructure and support future growth.
Amidst an absence of financial clarity, we provided a clearer picture, revamping the annual business plan process and insightful reporting packages. When it was determined geographic expansion and formation of new business line was needed to align with targeted growth, we did the following:
- Determined which markets to expand into and appropriate sequencing
- Developed cost assumptions for standing up new divisions
- Identified staffing needs and drove staffing plans for each new division
- Built the financial model and marketing collateral for new business lines
The Dawn of a New Era
Throughout our continual involvement, its team grew to 350 people, its revenue nearly tripled and their inventory reached over 800 units all within four years.
Their footprint expanded, from a single division to marking their territory across five unique markets on the West Coast. Our team also played a critical role in securing a $150mm preferred equity investment to fund future growth from an outside private equity group.
Your Growth Story Awaits with Bellwether
Every company has a story, and with Bellwether, it’s bound to be one of success, growth and transformation. Let us help define your next chapter.