The Appraisal world is under intensifying pressure that will likely accelerate the pace of M&A consolidation. We see the new “registry” component of the Dodd Frank rollback as another potential catalyst for consolidation in the fragmented appraiser and Appraisal Management Company (“AMC”) arenas. In this note we highlight where the market is pricing transactions given recent notable deals, including CoreLogic’s high water mark of 13.5X EBITDA. While the larger captive AMCs appear to have satiated their acquisition appetite for now, we see newcomers gaining ground, particularly those with private equity backing, including LenderLive and Class Appraisals or public companies like Altisource (NASDAQ: ASPS) and Real Matters (TSE: REAL). Further, the savvy independents are sure to make a play at accelerating growth through acquisition including Clear Capital, Dart Appraisal, LRES, Pro Teck and The William Fall Group.Read More
In the past year over 8,000 middle market M&A and investments worth nearly $150bn in transactions were completed. In 2018, we, like many others, see a healthy M&A horizon ahead and expect overall M&A trends to continue or even accelerate with recent tax law changes and cash repatriation by multinationals. However, there is no question that valuations have increased as this economic expansion is moving into its tenth year. Further, as the credit markets appear very open and companies and funds appear to have ample capital available, M&A should continue to see more than its share of capital action. Although expectations are running high that business conditions will continue to improve, there is the looming thought that the bull market will not last forever.Read More
In this article, we focus on a specialized market niche of collateral valuation and appraisals – a small but important part of the ecosystem in the underwriting process. We highlight the most recent M&A transactions, the key players and comments from leading Appraisal Management Companies (AMC) on how Fannie & Freddie (GSEs) are impacting the industry. From our point of view in the coming year – watch for more consolidation among AMC players as scale wins, GSEs disruption likely accelerates this trend while structural limitations to pricing (borrower fees) will continue to restrict industry profitability.Read More
Since 2008, MortgageTech has seemed to be a sector where good ideas go to die. The consensus opinion has been that this is due to a lack of innovation contributed by an industry dominated by a few banks and servicing companies, uncertain regulatory changes and a weak consumer backdrop.
At the 2017 MBA Tech Conference in Chicago, we observed a significant change in the air and came away with three key observations.
Following years of regulatory uncertainty in what is a heavily concentrated market among the largest banks, there are new signs of accelerating investment and innovation. In the past 18 months, we’ve seen out-of-character actions from incumbents and a small but building amount of new activity from venture capital and private equity firms. The opportunity to streamline inefficiencies inherent in the U.S. lending process is not a new one. However, after years of stormy regulatory upheaval, industry consortium wrangling and volatile economic backdrop, there appears to be a new sense of opportunity.Read More
Welcome to the rapidly changing sector of technology we call WealthTech. WealthTech is where investment management, portfolio accounting, advisory services and related software and services converge into a niche space within the technology world. The WealthTech space includes a rich field of incumbent providers, established services and a dynamic set of newcomers chasing the super-sized wealth management arena.Read More