M&A Opportunities For World Finance Corporation
During the past year, the World Finance Corporation (WFC) has grown from its origins in the United States to a global institution. This growth has been driven by acquisitions and profitability. As the company continues to expand, it will have the opportunity to expand its operations and reach new audiences across the world.
1. Origins
Founded in 1971, World Finance Corporation, or WFC Corp., is a financial institution that provides consumer loans to individuals. The company is based in Greenville, South Carolina. Aside from lending, World Finance also finances retail sales. It is also part of the World Acceptance Corporation. The company was founded by Guillermo Hernandez-Cartaya, a former Cuban banker and CIA agent.
The company has implemented the Solifi Originations software to automate their loan origination processes. During the trial phase, three of the company’s branches completed a proof of concept within 90 days. Compared to the company’s more traditional loan origination methods, the software significantly increased the speed and accuracy of transactions. In addition, it included some cool features. As a result, World Finance was able to save money on labor and materials while increasing overall transaction speed.
The most impressive feature of the software is its ability to create a loan document that is easy to understand and navigate. The software also has the ability to track a customer’s loan history so that it can make intelligent recommendations about future loan needs. Ultimately, World Finance chose the Solifi Originations platform to complete a proof of concept that was worth a congratulatory fist pump. Using the Solifi Originations platform, World Finance was able to automate the process of creating loan documents and ensuring that the originating bank is on board.
2. Locations
Founded in 1962, World Finance is an American company that provides financial services. It has offices in Illinois and offers tax filling services, loan payment solutions and fixed rate loan payments. It also offers involuntary unemployment insurance in Tennessee. In addition to the services it offers, World Finance has received multiple awards for its professional development, cultural excellence and top managers. Its employees have also been recognized as “Top Workplaces” in several regions.
The company’s first offices were opened in Greenville, South Carolina, and in 1982 it operated 87 offices. During the next three years, World opened 26 additional offices. In the year 2000, the company expanded its operations into Kentucky. In 2002, it acquired six offices in Alabama. The company also acquired 77 loan offices in the years 2000-2002. The largest acquisition was the Personal Credit Plan of San Antonio, which operated 30 offices in Texas and added $11.5 million in loans receivable to the company’s portfolio. The company also entered the Illinois and Missouri markets. In addition to offering its services, World Finance offers turnkey business platforms that allow you to grow your business.
The company’s charge-off rate reached 14.7% on $266.8 million in gross loans receivable in 2003. Its net income was $22.9 million. The company also operated 470 offices in 11 states at the end of fiscal 2003. World Finance was named “Top Workplaces” in 2021. In addition to being named the national winner, the company also received multiple regional awards for Professional Development, Cultural Excellence and Top Managers. You can learn more about World Finance in the company’s profile at Zippia. The company also offers an in-depth look at its employee data.
3. Growth through acquisitions
Whether you are looking for business growth or a way to enhance your existing offerings, M&A can help. But before you begin, you need to determine which strategies will work best for your company.
Despite a slowdown in M&A since the financial crisis, many companies are flush with cash, making it an attractive time to grow. Moreover, interest rates are at historical lows, allowing companies to take advantage of deals that would have been considered outlandish a few years ago.
The key to M&A success is to be in tune with the synergies that are present in a deal. A successful company has in-house teams dedicated to finding and executing acquisitions. This can be an especially effective approach when the companies are aligned with each other’s vision and goals.
The largest tech companies have proven that acquisitions work. In the past few years, Amazon purchased Whole Foods for $13.7 billion, and Frontier Airlines acquired Spirit Airlines for $6.6 billion in February 2022. By doing so, the companies improved their offerings, and increased their revenue by two times. Despite the slowdown, the search for higher returns will remain an unrelenting pursuit.
There are three main goals that a company should aim for when they decide to acquire a company: gaining market share, increasing growth, and gaining new technologies and products. While this is a relatively simple objective, it can be daunting to put together a comprehensive plan to achieve it. However, if you are successful, the rewards of M&A will outweigh the effort it takes to implement. This is why it is important to have a plan that addresses your company’s specific needs. You can’t stay ahead of every department, but you can grow quickly and gain market share with the help of M&A.
5. Subsidiaries
Founded in Greenville, South Carolina, World Finance Corporation has five subsidiaries. One subsidiary, World Acceptance Corporation, is a consumer loan company that offers loans for higher interest rates of up to $3,000. The company also offers credit insurance in certain states. The company also acts as a broker for automobile club memberships and carries out tax preparation services.
World accepts loans for people with limited credit histories. It charges the highest fees allowed by law and offers loans with a maturity of less than one year. It focuses on the subprime market, which is made up of individuals with limited access to credit.
In 1996, World Finance expanded its large-loan portfolio by 110 percent. It also acquired the Personal Credit Plan of San Antonio, a loan company with 30 offices in Texas. World expanded its tax preparation services and offered a variety of other services in addition to loans. World’s computer system sped up accounting and loan payments, freeing up loan officers to offer more personalized customer service. World continued to expand its loan business and acquired 77 loan offices during the three-year period. World accepted loans in Kentucky, Alabama, Tennessee, Georgia, Illinois, Missouri, and South Carolina.
World also provides involuntary unemployment insurance in Tennessee. Its subsidiaries offer tax preparation services, automobile club memberships, and electronic filing services. Its tax preparation revenues amounted to $4 million in 2003. The company’s loan portfolio amounted to $26.6 million.
World also has offices in Texas, Oklahoma, and South Carolina. These offices account for approximately 39 percent of the company’s revenues. The company added eight offices in Alabama in 2002. Its loan receivables amounted to $99.4 million in 1996.
- Understanding Business Line of Credit Refinance - April 28, 2023
- The Pitfall of Mortgage Refinance Calculator - April 28, 2023
- finance manager.1476737005 - April 28, 2023