Over the past several years, we have watched many accounts receivable management (ARM) firms expand into the customer relationship management (CRM) and revenue cycle management (RCM) industries as a means of achieving profitable revenue growth and diversification. At Kaulkin Ginsberg, we too have expanded our sector focus to encompass these market segments, which we collectively refer to as outsourced business services (OBS). We invite you to contact us when your interests include mergers, acquisitions, divestitures, valuations and litigation support. After more than 2 decades, we assure our clients rapid, results oriented services in a strictly confidential setting.
Michael Lamm: Healthcare ARM and RCM Industries Converging
The convergence between Accounts Receivable Management (ARM) and Revenue Cycle Management (RCM) providers continued to be apparent in Q1, as both strategic buyers and larger private equity backed Healthcare OBS companies were aggressively seeking acquisition opportunities in both markets.
M&A Activity Explodes in First Quarter of 2012
Buyers of accounts receivable management and related outsourced business services (OBS) companies seem to have bucked the trend of declining merger and acquisition (M&A) activity in Q1 2012, and instead acquired the largest number of companies in a quarter in over year.
Mike Ginsberg: The Caution Flag is Out When It Comes to Private Equity Buyers
Private equity firms are expecting to increase their investment activity overall this year. The good news for business owners who are contemplating a sale is that significant amounts of investment capital have been sitting on the sidelines waiting to be deployed, and private equity professionals are eager to transact.
Mike Ginsberg: Fixing The U.S. Postal Service Will Have Dramatic Effect on ARM Companies
Yesterday the U.S. Senate passed a plan to save the Pony Express, an effort that could save tens of thousands of jobs and keep opened a staggering number of processing plants and post offices slated to be closed or consolidated as soon as next month. Rescuing the USPS will have a dramatic effect on debt [...]
Mike Ginsberg’s Musings: Developing Trends for ARM Professionals
Happy Tax Day! To continue this week on an informative note for ARM professionals, I will take a look at three important trends developing. Be on the lookout for our Q1 report which will be made available shortly and will contain valuable information about developing M&A trends and the regulatory climate. Unemployment Rate Reduction Remains [...]
Mike Ginsberg: Lessons from Spring Break that Translate to Business
I just returned from a terrific spring break trip with my family to the Dominican Republic. Punta Cana is a wonderful place to visit. The beautiful clear blue water, sandy beaches, helpful staff and wonderful accommodations all set the stage for a memorable week away from the office. One thing that stood out for me [...]
Even Business Publications are Getting it Wrong on Collectors
Did you hear the one about the Bloomberg reporter ripping the entire student loan debt collection industry?
How Unemployment, the Post Office, and Capital Gains Taxes Could Influence Your Collection Agency
If you follow my blogs, you know that I typically dive into a particular topic that is on my mind. Today I am going to address three important topics, two that directly impact ARM professionals and one that is important to any owner who is thinking about selling his or her business. Buckle up because [...]
Bartmann Ethical Debt Collection Practices Act: Amusement and Concern
I read the recent story on Bill Bartmann with mixed feelings of amusement and concern. Amused, because I find it ironic that Bill Bartmann, arguably one of the most notorious members of the accounts receivable management (ARM) industry, would be able to have his name next to the word “Ethical” in any sentence, much less one associated [...]
Debt Buying Professionals See Improvement and Significant Challenges Ahead
Like many of you reading today’s news, I attended the Debt Buyers Association’s annual conference in Las Vegas last week.
Getting Ready for the DBA Conference
For the past nine years I have enjoyed all aspects of the DBA conference, from having 40-50 meetings with colleagues, clients and prospects; catching the latest rumors and gossip at the cocktail receptions and late night parties; and sitting in on a few sessions to keep current on industry events. And yes, doing a little [...]
Collection Agency Consolidation a Possible Trend in 2012
This will undoubtedly be another roller coaster year from an M&A perspective with a lot of mergers among the small and mid-size ARM firms, high profile domestic and international transactions and new private equity and strategic entrants.
Five Key Trends that will Reshape ARM Industry in 2012
Since the start of the recession, economic, regulatory, and market conditions have played a role in creating a new playing field for grantors, service providers and vendors.
Emerging Legal, Legislative and Regulatory Trends in the ARM Industry
The new year ushers in many changes for the accounts receivable industry on every front. We just released our Fourth Quarter 2011 report in which we covered the important topics impacting the ARM industry but legal, legislative and regulatory trends may be the most impactful.
Bank of America May Close Branches. Is ARM Impacted?
Last week, Bank of America told regulators that it may pull out from some U.S. metropolitan regions if its financial problems were to worsen. Will this impact ARM businesses that count the bank as a client?
Are We Out of the Economic Woods? Not Quite Yet
The unemployment rate unexpectedly plummeted in November. But can we trust those numbers, and how is the economy looking in general?
Why Debt Collection Firms Should Join the Social Media Soiree
Social Media platforms aren’t just kids’ stuff, and they shouldn’t be feared. In fact, ignoring or avoiding them could hurt your business. Mike Ginsberg will be speaking Thursday at ACA’s Fall Forum in Chicago. He’d love to talk about social media.
Buy or Lease Your Collection Call Center? An Agency Owners’ Dilemma
As we approach year-end, a lot of debt collection agency owners may be thinking about what do with their current facility space. Do they move into nicer digs, stay where they are and sign a longer term lease, or simply go out and buy a building?
Student Loans: The ARM Industry’s New Oil Well?
While there are challenges in entering the student loan collection market like any other, I am having a difficult time finding a reason why owners and executives would not strongly consider this market as a potential growth opportunity for 2012.
Strategic Planning Season: A Time for Change (PART II)
Part II of Kaulkin Ginsberg Company CEO, Mike Ginsberg’s, blog on 2012 strategic planning. Four easy tips for kick-starting your planning season.
Strategic Planning Season: A Time for Change (PART I)
Fall is the time for hayrides, pumpkin carving, football… and 2012 strategic planning. Is your company ready to turn over a new leaf in 2012?
Rays of Light Shining on the Credit Card Sector
There are distinct market trends unfolding that give validity to the notion that the credit card sector is finally bottoming out, and is poised for growth in the future.
Will Operation Twist Improve Recoveries for US ARM Companies?
Last week, the Federal Reserve announced a new stimulus program dubbed Operation Twist to boost a faltering economy. The plan calls for recasting its $2.65 trillion securities portfolio to reduce long-term interest rates.
Asset Class Diversification Doesn’t Come Over Night
With the volume drought in the credit card sector in full swing, a common theme we are hearing from credit card focused debt collection agencies is the concept of diversifying into other asset classes, such as auto or student loans.
Why You Should Pay Attention to the Credit Card Issue
Credit cards have arguably been the largest source of new business for the ARM industry for more than two decades. It leapfrogged over healthcare back in the 1990s and while it has experienced significant change in recent years, credit cards remain as one of the largest market segments in ARM.
Conferences are More than Swapping Business Cards
Conferences are a great place to press the flesh and not break the travel budget doing so. Unfortunately, some of you will limit your days to client meeting and I believe you will be short-changing yourselves if you do.
Questioning and Taking a Cue from Bill Bartmann’s Motives
Bill Bartmann’s latest interaction with the ARM industry is certainly attracting attention, to say the least. And while his motives are entirely self-serving, other agency owners can take a cue from some of his actions.
The ARM Industry is in for a Long Recovery – Part II
More of the top reasons why the ARM industry is in for a long economic recovery, including erratic liquidation results, increased regulatory and media scrutiny, and additional burdens confronted by small businesses.
The ARM Industry is in for a Long Recovery – Part I
A top ten list of why the ARM industry is in for a long economic recovery process.
Post-Crash Charge-Offs are Nearly Gone from ARM System
With over $200 billion of face value debt charged off in the credit card market alone between 2008 and 2010, how could business volumes be declining at the later collection stages?
The Debt Limit Debate and its Impact on ARM Industry
Last night’s announcement on a debt limit deal comes just days before the Federal Government would have been unable to pay its own bills, a notion that I am sure many collection professionals find ironic.
Credit Card Debt Buying Market Showing Signs of Life
Demand for credit card portfolios from credit issuers has picked up since the beginning of 2010 as a result of limited portfolio acquisition opportunities and an increase in liquidation rates.
International ARM M&A Deal Activity Heats Up
If you ever doubted the ARM industry’s footprint is global in scale, these past two and half months should change your perspective very quickly. In the past two weeks, there have been multiple, large-scale international ARM deals.
Adjusted EBITDA: Using Add-Backs to Maximize Your Company’s Enterprise Value
The sale of a service business like a collection agency or collection law firm is a complex process to be sure. But like a lot of other transactions involving a buyer and a seller, the question of price (or value) is typically front and center in both parties’ minds.
Healthcare ARM 2010 M&A Recap and Outlook
It was another active year within the healthcare vertical of the ARM industry. Notwithstanding federal insurance reform efforts in Washington, strategic and industry buyers were out in numbers looking for add-ons to existing platforms as well as those looking to land their first investment in our industry.
ARM M&A Outlook: 2011 is Shaping Up to be a Busy Year
Deal volume has been flat in the ARM industry for the past three years. But we expect to see a very active year in 2011 driven by a number of specific factors.
How Long Does it Take to Sell a Business?
Four months, six months, eight months, two years? How long does it really take — soup to nuts — to complete an M&A transaction? We are often asked this question from owners who are considering a sale. The quick answer is that nothing is “standard” in the market conditions we have been experiencing for the [...]
Take the Time to Stand Up for Our Industry
A cool, level-headed approach to responding to criticism of the ARM industry is usually the most effective. Here is one example of a great counter to an insane rant.
Know Your Buyer
Buyers have been circling ARM firms lately, often making offers that seem attractive. But you need to look into these buyers before deciding to head down a formal transaction path.
Kaulkin Ginsberg Q4 2011 M&A Report
Full year 2011 merger and acquisition activity kept pace with 2010 performance. 37 deals were completed in 2011 representing roughly $1.33 billion in total deal value, as compared to 38 deals and $1.37 billion in 2010. The international markets dominated the ARM M&A activity in 2011, with 14 transactions representing $1.15 billion, or roughly 87%, of the total deal value.
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Mike Ginsberg
Michael Lamm
Mark Russell
