3 minute readIn today’s accelerating homebuilding M&A cycle, a familiar inflection point is emerging — an operationally solid, regionally dominant builder, pressured by capital constraints and macro volatility, seeks a suitor with deeper pockets and staying power.
United Homes Group (UHG), a public homebuilder with roots in South Carolina and reach across the Carolinas and Georgia, now stands firmly at that juncture.
On May 19, UHG’s board of directors announced As one industry strategist familiar with the market put it: They’ve got good people, good local relationships, and good intentions. But it’s hard to run an acquisition play when you’re the one being outspent, outbuilt, and outmaneuvered.” In late 2024, as cash burn and debt pressure mounted, UHG refinanced a $35 million convertible note with Conversant Capital. In return, Conversant received $30.7 million in cash and more than 4.4 million shares of Class A stock. Shortly after, UHG entered a $70 million subordinated credit agreement with Kennedy Lewis. These moves simplified the capital stack and injected needed liquidity. Still, Conversant’s reduced stake (now 8.1%) and the resulting board seat turnover have left a streamlined, strategically retooled boardroom — but one facing a difficult valuation dilemma. In recent months, UHG’s stock has traded under $2, down from its 52-week high of $7.80. The challenge? UHG must now convince potential acquirers that the enterprise is worth more than the market says it is — while delivering enough upside to entice shareholders, steady the business, and align the remaining leadership. Despite its challenges, UHG does offer clear assets for the right buyer: For a national public looking to deepen its Southeast presence — or a capital-backed acquirer like Apollo (which just bought Landsea) — UHG could represent a strategic bolt-on or an accelerated growth platform, depending on price. The broader context has shifted. M&A activity in homebuilding continues at a brisk pace, but acquirers are pickier. With uncertainty around the Fed’s next moves, insurance costs destabilizing affordability in key markets, and land pricing sticking stubbornly high, buyers are showing discipline. The recent Landsea Homes acquisition by Apollo’s New Home Company at a hefty premium sets a high bar and invites uncomfortable comparisons. Landsea, too, was struggling, but it brought with it a deeper balance sheet and a more polished, differentiated product platform. UHG may have the people and the plan, but not the polish or the numbers. As one executive close to recent M&A activity told TBD, It’s a buyer’s market — until a really differentiated deal comes along. The burden is on sellers now to show not just potential, but execution.” Ultimately, UHG’s fate will depend on the quality of its process, the credibility of its team, and the realism of its valuation targets. Vestra Advisors, now retained to explore options, will need to court capital-rich and culturally compatible suitors. Could a regional private builder with institutional capital see UHG as a launchpad into public scale? Could a Japanese or Canadian entrant seek a local operator with management continuity? Could a public builder aiming for Tier 1 land access in the Carolinas strike a favorable deal? All are possibilities. However, each is complicated by UHG’s financial baggage, integration risk, and the still-tender nature of its public company transformation. UHG’s next chapter will either be written by an acquirer willing to bet on its upside, or by its own team, digging in for a long, grinding rebuild. Either way, the clock is ticking.Conversant and Kennedy Lewis Step In
What Makes UHG Appealing
A Changing M&A Environment
Can the Strategic Alternatives Deliver?
