Active equipment finance operator seeks methodology to evaluate and justify candidate new business lines

SITUATION

An established equipment finance originator desired to grow beyond their current offering but, on their own, had failed at several new market entry attempts. The client needed to adopt an evidence-based approach to ensure consideration of viable new markets.

SOLUTION

To serve the client, The Alta Group employed its proprietary suite of market entry tools designed to identify suitable new offerings. After calibrating our tools to align with the client’s strengths, we employed a multi-step process to analyze the scope, define suitability factors and score quantitative and qualitative factors on a multi-dimensional grid. New candidate products were scored and assessed alongside current lines of business. In addition to identifying several suitable new products, our analysis demonstrated that one current line of business was not viable long-term. The client’s volume and profitability increased with the exit of the lagging business and entry into new markets.