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Building Out Your Branch Network

In an article that appeared in the January edition of the Scotsman Guide, we wrote about how mortgage company financial managers are combining powerful technology tools to get a better picture of what impact a new branch acquisition will have on the company’s financials.


Companies intent on building out their branch networks by acquisition have traditionally relied on projections built on Excel spreadsheets to analyze a potential acquisition and make the decision about whether to move forward. There are challenges to this approach.


When you do the projections in Excel they will be at a different level than the way your actuals are reported. Moving forward, when you want to evaluate performance and see if you made a good decision, it’s hard to get the actuals into the Excel projections in a way that makes it easy to see your ROI, payback period - to see how well you did. Secondly, it’s hard to roll that projection up into your corporate plan. It’s a different workbook, at a different level than your corporate plan.


A best practice is to take the projections as the prospective new branch manager presented it, but also create a scenario based on the same assumptions and expenses from comparable existing branches. In this latter scenario, it’s common to give the branch manager’s forecasted volume estimate a haircut of 30-50%. Then see how the new acquisition performs.


Today’s analytical software, when paired with the right mortgage accounting software, makes this type of analysis painless. It will quickly show whether a new branch acquisition will be dilutive or accretive to earnings.


The full article can be found here: Improve Your Performance 


About the author:

Carl Wooloff is Mortgage Bank Accounting Technology Product Specialist at Bestborn Business Solutions, the company behind Loan Vision, the mortgage industry’s fastest growing provider of accounting and financial management solutions. Carl can be reached at

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