Friends link: 070-411 , 700-505 , 700-501 , 648-232 , 640-911 , 070-462 , 3I0-012 , 200-101 , C2020-703 , 070-347 , 070-463 , 070-412 , 117-202 , 400-101 , 70-412 , 70-243 , 70-417 , 200-120 , 100-105 , 117-201 , C9530-404 , 070-480 , 70-487 , 300-207 , JN0-643 , 4A0-100 , 600-199 , E20-690 , 350-018 , 070-410 , 70-410 , 100-101 , 642-747 , 70-331 , 70-413 , 70-411 , 352-001 , 210-260 , SY0-401 , 200-125 , 300-320 , 200-310 , CISSP , 300-115 , PMP , 300-075 , 210-065 , 210-060 , 70-534 , 70-532 , EX200 , 1Z0-803 , 210-451 , 300-101 , HP0-S42 , 300-206 , 070-346 , 70-461 , HP0-S41 , 640-916 , N10-006 , EX300 , 1Z0-434 , 1Z0-060 , C_HANAIMP151 , C_TAW12_740 , AWS-SYSOPS , 70-346 , 2V0-620 , 300-070 , C_HANATEC151 , E05-001 , JN0-360 , 2V0-641 , M70-201 , 642-999 , 70-697 , 300-208 , FC0-U51 , PW0-071 , C_GRCAC_10 , IIA-CIA-PART3 , 642-732 , 500-260 , C_HANAIMP142 , 98-366 , 1Z0-047 , 70-496 , 70-533 , 810-403 , 642-998 , 70-470 , JN0-343 , 642-742 , 220-802 , 70-486 , 642-035 , JN0-692 , 1Z0-470 , CAS-002 , 642-883 , PGMP , 200-105 , 1Z0-051 , 642-887 , 070-688 , 156-215.77 , RCDD-001 , 400-351 , H12-211 , C2090-930 , 102-400 , 70-696 , 070-685 , SK0-004 , 101-400 , 1Z0-061 , ADM-211 , 300-360 , 642-996 ,
Home / General News / Collection Agency Values to Increase, More M&A Activity Expected

Collection Agency Values to Increase, More M&A Activity Expected

The shifting political landscape will likely have a positive effect on the valuation of collection agencies, hopefully easing the burden that has increased expenses and making smaller agencies less interested in getting out of the business, said Michael Lamm, the managing partner of Corporate Advisory Solutions, during a webinar held earlier this month.

The webinar aimed to help executives better understand the economic, political, and regulatory undercurrents that will affect the valuation of collection agencies. The barriers to entry to starting a new collection agency continue to increase, making it less likely that new companies will come into the market, Lamm said. The best opportunity to get into the collection space is by purchasing an existing business.

Lamm pegged the cost of starting a new collection agency from scratch at $1 million, minimum, before “earning even a dime of revenue,” he said. Starting up a collection agency from scratch is possible, but will require a “large investment” to be successful, he said.

“The number of agencies is not growing, it’s shrinking,” Lamm said during the webinar, hosted by AccountsRecovery.net. “All segments are ripe for deals to be done.”

Among the growth areas of the industry that Lamm cited during the webinar are:

  • Healthcare
  • Student Loans
  • Auto
  • Commercial Loans

The new presidential administration, and the changes that are expected to occur under President Trump, should also make the industry more appealing to investors, Lamm said. For the past two-to-three years, most investment has come from inside the industry, meaning smaller agencies selling out to larger agencies that were looking to expand and because smaller agencies were unable to handle the costs associated with an increased regulatory burden.

“Activity has been driven by consolidation and not private equity investment,” Lamm said. “Things are happening now that are finally starting to change the view of the industry.”

One key area that Lamm expects some regulatory unburdening to be especially helpful is any changes to the Telephone Consumer Protection Act which makes it easier for agencies to use autodialers and contact individuals on their mobile phones.

Another important aspect to helping more deals come to fruition is the state of an agency’s Compliance Management System, Lamm said. Even if the regulatory burden is eased on collection agencies, it will not go away completely. And the investments that have been made in CMS’s are an incredibly important component in making sure that an agency is operating compliantly.

“You have to make sure you’re not walking into anything,” Lamm said. “Having those controls in place, a deal will be more likely to get done if those controls are in place.”

Expected changes to the Affordable Care Act are also placing more interest in the healthcare sector, especially among companies that specialize in revenue cycle management. Adding a collections component to the list of features offered could make collection agencies that specialize in healthcare collections more appealing.

To download a recording of the webinar, please click here. To request a copy of the presentation, please click here.

 

 

 

About mikegibb

Profile photo of mikegibb

Check Also

Payment Processor Offering No-Cost-To-Biller Solution

Compliance is king these days in the ARM industry. That includes how collection agencies and ...

Leave a Reply

Your email address will not be published.

Skip to toolbar
210-060 vce 70-412 vceMicrosoft Real Exam Questions - 100% Free VCE Files 700-501 vce 70-417 vce 200-125 exam Cisco CCENT/CCNA ICND1 100-105 exam Training 210-260 exam 300-075 exam 300-070 exam 200-105 exam 300-101 exam Pass CISCO 300-115 exam - test questions 200-310 exam SY0-401 exam 400-101 exam EX200 exam Cisco CCNP Security 300-207 exam SITCS EX300 exam 400-051 exam 200-355 exam 300-320 exam Download 3I0-012 exam PDF Questions Answers 070-463 exam 300-206 exam 640-916 exam Exam Ref 70-697 exam Configuring Windows 210-451 exam 1Y0-201 exam 070-346 exam 100% Pass Guarantee of Your 640-911 exam 200-120 CCNA - Cisco Cisco100-101Exam Answers 070-411 70-410 C2020-703 Cisco352-001 Study Guides 200-125 352-001 70-410 100-101 600-199 - Scyber [Cyber Security Specialist] Need Advice ... E20-690 070-688 100% Pass Guarantee of YourRCDD-001100% Free VCE Files 400-351 SK0-004 101-400 200-310 352-001 100-101 Cisco350-018Dumps - Pacifichem 2017 070-410 70-410 100-101 642-747 642-996 - 94583 - The Cisco Learning Network 200-125 CAS-002 Study Guide for1Z0-061: Oracle Database 12c 101-400 JN0-692 642-035 70-486 How I Passed the CompTIA A+ 220-802 Exam | TechRoots - Phoenix TS 642-742 200-125 2V0-620 300-070 CCNP Collaboration Exam - Cisco Ex300 JN0-360 C9530-404 Everything you want to know about LPI117-201 100-105 200-120 70-417 300-115 pdf 200-125 pdf 70-410 pdf 300-070 pdf 70-698 dumps 70-695 dumps 070-411 practice questions | 070-411 exam vce test files ... 700-505 700-501 648-232 640-911 070-462 Dumps Pdf - No.1 MCSA 070-462 Exam Code - Franz-Peter ... 300-070 300-206 300-208 642-874 300-115 210-060 210-260 100-105 300-101 300-370 70-646 exam Microsoft Real Exam Questions - 100% Free VCE Files 1z0-574 dumps 700-039 exam 1Y0-401 exam 210-060 70-243 300-101 CCNP Routing and Switching ROUTE300-101Implementing Cisco IP Routing 300-320 200-125 352-001 Most Accurate Cisco 200-101 Test Get Easily 200-310 100-105 210-260 600-199 EMC E20-690 | Prepare e20-690 exam 070-688 RCDD-001 400-351 Latest h12-211 Exam Questions and Answerslead4pass ex200 exam Sale Latest Cisco 400-101 PDF 100-101 70-410 Easy and Guaranteed 70-412 Exam Success 117-202 117-202 070-412 Microsoft 70-417 Free Dumps 70-411 200-120 lead4pass 100-105 Free 70-487 Exam Questions PDF Microsoft 350-018 350-018 300-207 117-201 C9530-404 Alcatel-Lucent 4a0-100 Material PDF Preparation Test 70-243 352-001 lead4pass 352-001 117-202 200-101 Download 4a0-100 Exam PDF Questions Answers 600-199 070-410 300-115 dumps 300-115 dumps Questions Answers PDF - Scribd 70-410 70-331 352-001 Sale Best Microsoft 070-346 Study Material 1Z0-060 70-417 C2090-930 exam Download 4a0-107 Exam PDF Questions Answers JN0-643 lead4pass 210-060 pdf 210-060 pdf lead4pass 300-101 practice test 300-101 practice test CCDP Exam 300-320 exam : Designing Cisco Network Service Architectures 300-320 exam Pass 1z0-051 dumps in 3 Days - 100% Money Back Guarantee‎ Pass COMPTIA sk0-004 study guide -test questions convert vce to pdf