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While Mortgage Choice continues to keep mum on its acquisition targets, chief executive officer Michael Russell is hopeful the ASX listed brokerage will acquire a business before year end.
According to Mr Russell, the franchise group is currently in talks with at least two companies regarding a potential acquisition.
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“We are actively pursuing various acquisition targets that fall in line with our company requirements and are in step with our FY10 DREAM strategy,” Mr Russell told Mortgage Business.
Earlier this year at the company’s annual results presentation, Mortgage Choice announced is strategic plan for the year ahead, with a focus on diversification, recruitment, its existing franchises, acquisitions and management of costs.
“We are tracking very well so far, with our first quarter results providing good news. This includes our greenfield franchise recruitment, where we have recruited more in the past quarter than we did throughout FY09.
“We are confident of arresting the decreases we suffered last year and reporting an increase on our FY09 settlements, and NPAT,” he said.
Mortgage Choice’s franchisees are also looking at potential acquisition targets.
According to Mr Russell, the National Consumer Credit Protection Bill will push many brokers out of the industry and force a proportion to sell their loan books.
“I believe that we will see the 12,000 brokers operating in the industry today, reduced to a four figure number within 12 to 18 months of the regulation’s implementation,” he said.
“As such, we are currently educating our franchisees on the best ways to acquire these loan books that will inevitably come up for sale. But apart from education, we are also offering our franchisees a funding opportunity that will enable them to acquire a loan book without having to put up any of their own funds.”
Mr Russell said the company would outline its first quarter results and update its FY10 guidance at the company’s Annual General Meeting, which will be held on 24 November.
