| The development of a successful portfolio acquisition
strategy requires an enormous amount of time and energy. It is important
to note that 99% of the issuers are now competing for the 1% who choose
to sell their portfolios. Without a sound strategy in place, what
often happens is a buyer continues to look at every deal brought its
way, bidding on a few, passing on most, and unfortunately, not successfully
closing any.
Having transaction experience, not only as an intermediary but
as a principal (both buyer and seller), in credit card portfolio
deals makes us uniquely qualified to serve as your advisor. We understand
the economics of the business and how to establish criteria by which
you can accurately evaluate portfolio transactions.
A typical acquisition engagement runs approximately 45 business
days and results in a document that details the following:
- A review of past deals in the marketplace;
- A specific target prospect list, based upon geographic preference,
size, processor used, and credit quality characteristics that
best satisfy the acquisition objectives of the client;
- A specific competition list;
- A list of resource requirements to be used;
- A time table for launching and updating the acquisition strategy;
- Referral sources to be used;
- Portfolio valuation techniques.
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