LRES, a provider of valuation and asset management services for financial institutions, is currently on the hunt for strategic acquisition targets as the company continues to benefit from positive growth in the first half of the year.
The mortgage services provider is in 'acquisition mode' for several reasons. It's own 2013 success story being one of them. LRES noted that it experienced 35% growth in just the first half of the year, surpassing 2012 levels early on.
With this in mind, the firm has laid out a few targeted financial objectives and goals which are achievable if it matches organic growth with the right acquisitions, ensuring any platforms added fit with existing products and services.
In a market where default servicing firms and mortgage service providers are partnering up to meet the regulatory headwinds, LRES is hoping to benefit from its current growth mode, finding the right companies to buy.
The Orange County, Calif.-based firm considers appraisal management companies, trustee firms and title and escrow firms as possible targets.
"By having products that offer technological advantages and regulatory compliance, our clients will be better served," said LRES CEO Roger Beane.
The mortgage industry is creating an opportunistic time for growth, given that compliance issues are squeezing margins, offering a chance to diversify offerings as a protection against the continued pressure.
"As we read the market, we see it is now contracting and will only continue to contract," Beane explained.
He added, "To ensure LRES’ longevity, we must grow our business to be the true end-to-end solution that clients will expect in the future."
The company’s increased performance was also partially generated through the implementation of growing its employee base and increasing the number of institutions.
These types of expansions allow the company to grow its national footprint to assist borrowers.
LRES also has enhanced its technology solutions, including the launch of DirectConnect, which enables clients and third-party systems to integrate into a management platform that accelerates the appraisal process.
"The success of our strategic national growth plan has enabled us to carefully strengthen our internal processes as we grab market share and position ourselves for continued growth as we approach 2014," Beane said.
He concluded, "We look forward to capitalizing on our recent expansion by acquiring companies within the mortgage industry that complement our own."