A leading sub-prime mortgage lender was interested in spinning off from their retail banking parent company (Regions Bank). The CEO believed that a premium valuation could be achieved from a strategic buyer who was interested in marketing lucrative sub-prime securitized assets. Needed to reposition the firm and make it more attractive.
Challenges
Sub-prime lending viewed as very unattractive to retail banks because of litigious environment and predatory lending accusations
Highly profitable business in 2006 - but lacked clear marketing plan and sales strategy for growing their book of business
Precedes credit fallout that would occur in mid-2007 - management team seeking a premium valuation for investors and more senior roles in new entity
Approach
Performed role as de facto CMO for the organization and developed marketing plan for the business
Targeted high-value broker relationships to drive growth in volume
Created compelling story around the potential for the business and helped to target three potential acquirers
Developed growth strategies
Results
Sold to Barclays Capital for $220 million in advance of sub-prime market fallout
Created premium value positioning for the company and helped secure buy-in from management team and investors to support deal
Facilitated the transaction to successful closing and provided guidance to both parties related to integrating marketing activities
| Attachment | Size |
|---|---|
| Case Study Barclays.pdf | 108.66 KB |
