M&A Activity in the Debt Collection and ARM Industry Holds Steady through Q308

The total deal value for mergers and acquisitions in the debt collection / accounts receivable management industry is at $1.8 billion at the end of the third quarter – barely exceeding last year’s total of $1.7 billion, according to Kaulkin Ginsberg, the leading M&A and strategic advisor to the industry. A few high-value transactions in the first half of the year, especially in Europe where the ARM market continued to enjoy strong transaction multiples, contributed to this year’s high deal value total. Four deals with over $100 million in deal value contributed to 81% of the total year-to-date.

Twenty-nine deals closed through Q308, compared to 44 transactions as of third quarter last year – 69 percent of 2008 deals were made by industry buyers, compared to 40 percent of deals completed in the same period last year.

The year-long economic downturn and credit crunch has definitely impacted the landscape of M&A across virtually every market sector. It will inevitably impact the ARM industry, although through three quarters of 2008, it has not yet been apparent. 

Kaulkin Ginsberg will address how the recent market turmoil is impacting the ARM market in an upcoming invitation-only teleseminar on October 21st at 1pm ET. Interested parties should contact Anne Strong, Marketing Director, at 240-499-3816 for details.

About Kaulkin Ginsberg
Kaulkin Ginsberg is the leading M&A and strategic advisor for the debt collection / accounts receivable management industry (ARM), completing over 125 M&A transactions valued at over $3 billion. For ARM service providers, their value-add advisory services focus on analysis, growth, and exit strategies. For credit grantors, the focus is on optimizing receivables management strategies. Kaulkin Media division is the worldwide leader in providing timely news and insight on the recovery of debt in all industries. Kaulkin Information Systems creates secure and affordable workflow, document, and business process management technologies. Read more about Kaulkin Ginsberg at www.kaulkin.com.