How to grow your mortgage firm: Consolidations

Despite all of the recent changes in the mortgage banking industry, most banks and mortgage firms still have one goal in focus...increasing production. Although growing your firm branch by branch, LO by LO, (organically) is still a good bet you may not realize that there is a very potent alternative that will increase your firm's production rather quickly without requiring a huge investment. It's done by blending another smaller firm into your operation. We call it a consolidation. Although it resembles a merger or acquisition it is considerably less complicated.  At netbranchology.com, we have a department, the Strategic Consolidations Department,  that works with firms who are searching for companies with which they can consolidate operations. Conversely, we work with companies that want to be absorbed into another larger firm.

Several of the factors that we review when considering a consolidation are:

• the compatibility of cultures of the two companies;
• the marketing platforms
• target markets
• assets to be transferred
• salary package for main players.
• scalability of operations

Typically, the owner of the smaller firm simply winds down his firm, puts any segregated net worth funds into his pocket and orchestrates the hiring of his employees by the new firm. The prior owner usually comes on board as a district or division manager. The existing branches remain in their locations and essentially take down one sign and put up another. In some cases we have even seen the smaller firm keep a name similar to their own or DBA.

There are ways to minimize the problems that transactions like these can generate. At netbranchology.com we put in a lot of effort prior to the transaction to eliminate obvious problems and cultivate a strong foundation for the new relationship. When those inevitable  disagreements do occur, we, at netbranchology.com,  are there to help you iron them out. One mistake that firms make when trouble starts is trying to cast themselves as both negotiator and mediator. This can be a tragic mistake when the parties land at odds about their respective best interests. Sometimes only a trusted third party who knows the surrounding circumstances is the answer, and that's us, netbranchology.com.   Contact one of our representatives in our Strategic Consolidations Department to find out how you can grow your firm by consolidation or blend your firm into a larger bank or mortgage firm.
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netbranchology.com is a specialty recruiting firm that works with banks and mortgage firms across the country.

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