With significant turmoil in the mortgage banking industry and AEM’s focus on purchase versus refinance for first time home buyers, there was tremendous opportunity in the marketplace for both organic growth and geographic expansion. Working with Evolution Capital Partners, AEM hoped to expand internally through new hires, expand geographically throughout the nation, and increase profits.
Evolution Capital Partners entered in 2009, implementing their methodology:
Fundamental #1: Accurate & Timely Financials
- Partnering with the co-founders, Evolution Capital Partners assisted the AEM to enhance their financial reporting and controls and identify key metrics to monitor on a regular basis. Ultimately, transaction times were decreased, which lead to lower overhead and increased efficiency.
Fundamental #2: Achievable & Measurable Strategic Plan
- Evolution Capital Partners worked with company co-founders to create a detailed plan for growing the business: attracting highly qualified, displaced loan officers, expanding within the state of Florida, and identifying additional expansion markets. They also identified the opportunity to build a centralized underwriting department for the business.
Fundamental #3: Aligned & Experienced Leadership
- After aligning leadership around a single strategic plan and compliance, AEM attracted new management teams at each location as well as 30+ core loan officers.
Fundamental #4: Transparency & Accountability of Team
- Through identified metrics and enhanced control systems, information could be easily shared to discover areas of improvement and efficiency opportunities. This information lead to increased clarity in business goals. Management had the ability to hold individuals accountable, empowering them with information. Employees understood not only where the organization was, but what they needed to do to achieve the end goal.
Fundamental #5: Effective & Repeatable Sales Process
- The company grew through geographic expansion, both by making acquisitions and by establishing entirely new locations. AEM was able to grow sales rapidly in Columbus, Ohio and on the gulf coast of Florida by replicating the system and processes developed and used in their original Lorain, Ohio headquarters.