I wrote a blog post last week as a follow up to an article that was in the Spring Edition of Debt Buyers Association magazine regarding asset class diversification. Interestingly, later that week, a reporter from the Jacksonville Business Journal wrote a piece on September 28th about a hybrid ARM business, Stellar Recovery, owned by John Schanck, that purchases receivables and also performs first/third party collections for its clients.
With all of the challenges going on in the credit card arena specifically with volume declining and more stringent compliance and audit requirements, agencies like Stellar are not standing still – they are diversifying into other asset classes such as cable, satellite, and telecom collections. According to the article, they are expecting a big year in 2013, where they plan to double revenue as a result of new clients they expect to on-board in January, and add more headcount to support client needs.
To read the article in the Jacksonville Business Journal, click here (subscription required) or if you would like to check out my asset diversification blog or the article in the DBA magazine, click here.
Michael D. Lamm advises owners on their growth and exit strategies for Kaulkin Ginsberg’s Strategic Advisory team. Michael can be reached directly from Kaulkin Ginsberg’s Philadelphia, PA office at 240-499-3808 or by email. You can also read his blogs, follow him on Twitter, or network with Michael from his social media page.