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The mortgage Mergers and Acquisitions market is accelerating, for both Banks and for Independent Mortgage Bankers. In fact, Bank M&A activity (banks buying banks) has been heating up for several quarters, and now Independent Mortgage Bankers (IMBs) are actively seeking exit or partnership opportunities to better compete in a tougher purchase-centric market. This means that lenders with the potential for being acquired need to get their house in order, both in terms of their financial condition and from a borrower satisfaction perspective. Acquiring lenders are beginning to recognize the significant financial value of delighted borrowers, and more and more M&A negotiations are including this element in determining Enterprise Value. These acquiring lenders are looking at the entire business model when deciding which divisions, branches, and legacy systems will be brought forward which will not.
Today’s market is certainly being influenced by M&A valuation factors, and this could impact your company whether or not you are currently a seller. After all, strategizing on how to compete with the big box lenders may determine your survival. From the CEO to the Branch Manager, all levels of leadership could be affected by an acquisition transaction. Knowing your Customer Satisfaction scores at a company level, or even at a branch level, can give you confidence because such measures are an integral element of your corporate culture…and culture often trumps other considerations in an M&A situation.
Gathering hard data on your customer satisfaction levels shows that you not only talk about customer satisfaction, but that you can demonstrate a real analytical approach to measuring and delivering satisfaction. STRATMOR has recently been involved in a number of M&A transactions, and at the heart of the due diligence conversations for any buyer is the question, “How do you treat your customers?” Or put another way, “Do you have a culture of satisfaction?”
According to STRATMOR Senior Partner Garth Graham, “When companies can say, ‘Yes, we measure and score our LOs, our Processors, our Underwriters and our Closers,’ that presents a disciplined approach to management. STRATMOR recently served as the advisor on a transaction where a larger lender partnered with a smaller entity that was able to prove empirically that they had a great brand and a great commitment to provide high levels of satisfaction. There is power in providing your borrowers with white-glove service and being able to measure its effects.”
There are plenty of things you can do now to improve your company’s perceived value.
Here are three steps you can take immediately:
Ready to learn more about STRATMOR’s turnkey survey solution called MortgageSAT, and how rich, drill-down data can help your company? Contact MortgageSAT Director Mike Seminari at email@example.com to learn more.
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