Rosemary,
I have followed FMAX since I bought Imperial Credit Industries, ICII, last year. FMAX specialized in the underserviced business of financing small business and franchises, that are too big for SBA, yet too small and unproven for the big banks, and too unspecialized for the franchise funding arms of the major franchisors like McDonalds or Wendy's.
FMAX has a complex ownership structure. The hierarchy is Imperial Bank, IMP, owns about half of ICII. While ICII owns some of FMAX and other fledgling niche finance companies.
high level ownership IMP
middle level ownership ICII
new niche companies:
1) FMAX
2)Southern Pacific Fund'g -SFC- sub prime mortgages
3) Imperial Credit Group - a private brokerage
4) Imperial Credit Mortgage Corp -ICMI- a Maryland REIT
5) AVCO and other equipment leasing finance companies.
ICII's motus operandi is buy these companies, inject new mgmt and needed capital, then gradually sell them to the public while retaining a substantial position. Usually, H Wayne Snavely comes into acquisition as CEO or chairman, gets familiar with the business, studies mgmt, and steps down. ICII bought FMAX in June 1995, executed its plan, and recently began selling shs to the public.
Here are my notes of this matter from fall 1997.
Nov 21, 1997 - Franchise Mort Accept,fmax, to sell 10 mill shs to public for $18/sh; ICII sells 3.1 mill
shs of the total for $92 mill; now owns 38 % of fmax
Rosemary, you may want to further study the situation and take an ownership position higher up the hierarchy, or your ideas of buying FMAX may be right for you.
Good luck investing
Carey Thompson
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