Case Studies

Creating A Premium Value Positioning

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

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