A major money center bank sought an exit from non-core businesses
and hired a large Wall Street firm to find a buyer for its profitable
Chicago based commercial mortgage banking operation. Certain
contingent liabilities in the mortgage operation caused concern,
particularly to public company buyers.
Recognizing an outstanding management team with a long record
of profitable operating history and satisfied customers, HRCo
took the time to assess and become comfortable with the contingencies.
A cash purchase satisfied the seller and a broad group of managers
was brought into the ownership group.
Two add-on investments broadened the size, geographic scope
and profitability of the business. The business was sold
to GMAC Commercial Mortgage Corporation.