NEW YORK, July 29, 2026 — Berkshire Hathaway Inc. (NYSE:BRK.B) has successfully completed its all-cash acquisition of Taylor Morrison Home Corporation (NYSE:TMHC), bringing an end to public trading of the homebuilder’s shares. Under the terms of the deal, eligible shareholders received $72.50 per share in cash. Trading in Taylor Morrison shares was suspended after July 24, with the final recorded price at $72.45, reflecting a spread of just five cents, or approximately 0.07%.
The acquisition price represents a trailing earnings multiple of roughly 10.8 times, based on Taylor Morrison’s trailing earnings of $6.71 per share. This multiple is approximately 19% below the average trailing P/E of 13.3 times for four leading publicly traded homebuilders: Toll Brothers (NYSE:TOL), Lennar (NYSE:LEN), PulteGroup (NYSE:PHM), and D.R. Horton (NYSE:DHI). The discount underscores the challenging operating environment facing the homebuilding sector.
Berkshire’s offer represented a 24% premium over Taylor Morrison’s closing price of $58.50 on May 29, before the deal was announced. The total equity value of the transaction stands at $6.8 billion, which equates to approximately 1.09 times Taylor Morrison’s book equity of $6.25 billion as of March 31.
Greg Abel, Berkshire’s vice chairman of non-insurance operations, stated that Taylor Morrison will spearhead the company’s “vision for a unified site-built homebuilding operation.” CEO Sheryl Palmer will continue to lead the company and oversee the integration process with Clayton Properties Group, Berkshire’s existing manufactured housing unit.
The acquisition comes at a time of significant headwinds for the homebuilding industry. Taylor Morrison’s first-quarter results showed a 28% decline in closing revenue, a 26% drop in closing volume, and a 14% decrease in net orders. The adjusted closing gross margin stood at 20.6%. The company attributed these challenges to elevated mortgage rates, tariffs, and inflation, prompting increased incentives and financing assistance following a decline in buyer traffic.
Market conditions remain pressured. The Mortgage Bankers Association reported a 6.4% drop in mortgage applications as of July 24, while Freddie Mac’s latest 30-year fixed-rate average was 6.58%. As of the dateline, Taylor Morrison had not yet published second-quarter results, with the investor website still showing Q1 as the most recent update. Previous guidance, not actual results, projected closings between 2,500 and 2,600 units, an average price of $575,000, and a minimum margin of 20%.
UBS analyst John Lovallo described the transaction as a “strong vote of confidence” in the homebuilding sector, noting that the combined entity could become one of the five largest homebuilders in the United States.
Berkshire Hathaway’s Class B shares closed at $510.45, down 0.4% on the day. With the deal complete, Berkshire now holds the public-market exposure to the homebuilding sector, while Taylor Morrison operates as a wholly owned subsidiary.
Investors should be aware of several risks: elevated mortgage rates may require larger incentives, putting pressure on margins; integration with Clayton Properties could face delays or higher costs than anticipated; and Taylor Morrison’s status as a private company will limit transparent financial reporting. Former TMHC shareholders now hold claims to cash rather than shares in a cyclical homebuilder.
