Fairbriar chairman Kevin McCabe is set to take the housebuilder private after his £18.6m management buyout offer was recommended by directors.
McCabe, who also runs property companies Teesland and Scarborough, and is chairman of Sheffield United football club, initially said that he was leading a consortium that intended to make an offer last month.
The offer of 52.5p a share is a premium of almost 18% compared with the share price on 12 April, the day before the takeover approach was announced.
In the year to 30 September 2004, Fairbriar made a pre-tax profit of £200,000, compared with a loss of £800,000 in 2003. Turnover increased 18% to £18.8m.
In a statement to the stock exchange on Tuesday the company said it expected results for the six months to 31 March to be hit by construction delays and a fall in sales.