R. K. Hammer - Investment Bankers
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Card Portfolio Sales

Deciding to sell your portfolio is never an easy decision to reach, especially considering the very reason the sale would generate a profit is the strong current and future earnings from the portfolio. When you divest, you give up that future earnings stream. Still, when an organization needs an immediate boost to earnings or capital, or both, the card portfolio becomes an even stronger contributor to shareholder value through a portfolio sale, partial or total.

Over 70 issuers decided to sell last year, not counting numerous, smaller transactions. These ranged in value from less than $20 million to over $80 billion.

If we are retained as the investment banker to intermediate a portfolio sale, the following services are customarily provided:

  • A net/present value estimate and transaction expectations are prepared.
  • A book of prospective bidders is built.
  • Bid instructions are prepared.
  • The Offering Memorandum is constructed and distributed to those known portfolio bidders most likely to be interested in the portfolio.
  • Discussions are held with potential bidders clarifying the portfolio characteristics.
  • Due diligence is coordinated, and letters of intent and contracts negotiated.
  • The transaction is closed.
  • The foregoing can usually be accomplished in 45-60 days, although shorter time frames can be accommodated.

 


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