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Developing a "Company Book"

Most mortgage bankers we see don’t have a “Company Book” readily available that gives a synopsis on what the company is about and how the business has been running.  A “Company Book” can be handy when developing key partnerships, raising additional capital or establishing strategic relationships.  If you don’t have a current “Company Book”, here are our suggestions on what to include:

1.  Executive Summary:  Or better know as your “elevator pitch”.  The summary might include the value proposition in the marketplace, the business model and key strategies to meet the objectives of the plan.

2.  Business Plan:  The narrative on your plan is more than a marketing piece.  The business plan contains granular details of how the company is going to generate revenues, control costs and be profitable.  The document should include details on the value proposition, business environment, management team, competitive edge and industry competitors.  The plan should have some information or reference to industry benchmarks like the MBA cost study. 

3.  Business Pro Forma:  The pro forma should have a profit & loss, balance sheet projections and cash flow requirements.  The document should include ratios such as Return on Equity and Return on Revenue. 

4.  Financial Statements:  Recent audited financial statements and year-to-date unaudited financial statements should be included.  Many key partners will want to see you are capable of making money. 

5.  Historical Key Metrics:  The metrics should include the production numbers in dollars and units for the last two to three years, including the current year.  The production metrics should be broken out by channel and products.  Another key metrics is the gain-on-sale and it should be broken out by channel, product and investor.  Operation productivity metrics should be included.  Another important key is to translate dollars to basis points when comparing channels and products. 

6.  Capital Requirements and Deployment:  There needs to be information on how much capital is needed and how will it be used. 

Developing key partnerships, raising additional capital and establishing strategic relationships takes more than presenting a high level Excel spreadsheet and brief bullet points about the company.  Taking time and effort to develop the details of a “Company Book” is a worthwhile project so when you need a new partner or more capital, the “Company Book” is all ready to deliver.  Developing a “Company Book” may take many iterations before it is ready to pitch and present to someone.  If you need assistance or would like to talk to us about developing a ‘Company Book’ don’t hesitate to give us a call.  

Cameron Watts, CMB

C. M. "Corky" Watts, CMB

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Reader Comments (1)

You included a nice way to outline the necessary steps for developing a Company book. Thanks for sharing.

June 18, 2013 | Unregistered CommenterTrina J.
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