Interest and activity from companies looking to acquire collection agencies and other players in the accounts receivable industry continue to heat up, according to Michael Lamm and his team at Corporate Advisory Solutions, which published its quarterly newsletter yesterday morning.
Even though there are still some uncertainties in the market, such as a renewed interest in states passing ARM-related laws, there is a “renewed interest” in companies looking to enter the ARM sector and market dynamics appear to be heralding an increase in the sale of debt portfolios, according to Lamm.
Continued “favorable political and macroeconomic factors, creating an attractive time for investment,” will keep deal activity high in the ARM space in 2018, according to CAS.
There were 10 M&A deals during the fourth quarter of 2017 in the ARM sector, CAS reported, with a total value of $913 million. That compares to seven deals worth $368 million in the third quarter of 2017.
In the Revenue Cycle Management space, there were four deals with a combined value of $1.7 billion, up from seven deals worth $465 million in the third quarter. Lamm is expecting activity in the RCM space to continue to increase in 2018 as more companies “continue to adjust to the changing industry landscape, and vendors seek to partner/join forces to better compete for client business and market diversification.”
