Subsequent Event

3 Months Ended

Mar. 31, 2017

Subsequent Event

Subsequent Events

Note 9 – Subsequent Event

On April 3, 2017, we acquired substantially all of the assets and certain liabilities of Savvy Homes, LLC and certain of its affiliated entities (“Savvy”) for approximately $45 million, including a $3 million estimated earn-out, and remains subject to customary post-closing adjustments. The actual amount of the earn-out may be more or less than the $3 million target amount based on the performance of the Savvy business through the end of 2018. A portion of the aggregate consideration equal to $0.6 million was placed in a third-party escrow account as security for Savvy’s indemnification and other obligations under the purchase agreement. Savvy acquires raw and developed land, develops raw land and constructs single-family homes in the Raleigh, North Carolina area and enhances our position in a key growth market.

As of the date of this report, the initial accounting for this business combination is incomplete because the valuation of assets and liabilities acquired is still in process; therefore, certain disclosures required by ASC 805, Business Combinations, cannot be made at this time. These disclosures include the amount of acquisition-related costs, the fair value of acquired receivables, the amounts of major classes of assets and liabilities acquired, the amount of goodwill recognized, if any, including qualitative discussion of the factors that make up that goodwill, the total amount of goodwill deductible for tax purposes, the amount of goodwill reportable by segment, the fair value and description of contingent consideration, and the amount of revenue and earnings of Savvy since the date of acquisition and since the beginning of 2016.