While Warren Buffett may be unable to find a reasonably priced, multi-billion-dollar acquisition. Berkshire’s subsidiaries continue to make what Buffett refers to as “bolt-on” acquisitions.
These acquisitions add on to Berkshire’s existing businesses, expanding their reach and scope of operations.
The latest acquisition came recently when Berkshire’s Vanderbilt Mortgage and Finance, a financier of manufactured and modular homes, acquired Silverton Mortgage.
Silverton Mortgage has 22 locations and is licensed in Alabama, Colorado, District of Columbia, Florida, Georgia, Louisiana, Maryland, North Carolina, Pennsylvania, South Carolina, Tennessee and Virginia.
Founded in 1998, Silverton Mortgage grew from a one-person shop to a top residential mortgage lender with 170 employees, and is one of the nation’s fastest growing financial companies.
Despite the acquisition by Vanderbilt, Silverton Mortgage will be retaining its name, leadership, employees and corporate identity following the transaction.
Expansion is also in the works. It is also anticipated that, because of this transaction, Silverton Mortgage will expand its footprint and increase its access to capital to develop an expanded line of products and services for its clients. There will be no lapses in service for borrowers currently working with the company.
“While we were not actively looking to be acquired, we are grateful for this opportunity to expand our services, both in terms of geographic footprint and loan product offerings, while keeping our identity and the great people that have built our culture of unparalleled service to our customers and communities,” said Josh Moffitt, who will stay on as the president and CEO of Silverton Mortgage. “This is a unique opportunity to keep what makes Silverton special, while also improving the service and lives of our customers and employees.”
Vanderbilt Mortgage services over 200,000 loans and also offers financing for eScore energy efficient home improvements.
© 2018 David Mazor
Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.