The accounts receivable management industry is on the edge of consolidation. Regulatory and compliance requirements, increasing client demands, and volatile economic conditions continue to pose challenges. ARM companies that can’t compete are closing shop or getting gobbled up by larger players. The financial services segment is still on a slow road to recovery following the Great Recession, paving the way for healthcare and government collection services to take center stage. Industry leaders and their teams who analyze the factors that affect these markets can capitalize on expansion opportunities.

Kaulkin Ginsberg’s latest bi-annual industry report highlights the areas presenting the greatest growth prospects, the economic and regulatory trends impacting them, and insight on merger and acquisition deals. Highlights include:

• The new IRS income tax collection program represents a veritable mother lode no matter how we tally up the numbers.
  
• The healthcare RFP process is nearing a peak. However, it appears peak season is getting smaller and the non-peak season is growing.
  
• If the 10-year treasury rate increases as drastically as the Congressional Budget Office projects, borrowing will become much more expensive, discouraging consumers from taking out loans.
  
• ARM companies too small or immature to withstand the winds of change are closing doors or being acquired; on the flip side, ARM companies with robust compliance and financial infrastructures are gaining market shares at every turn.
  
• The U.S. ARM industry is on the verge of a major consolidation that will result in fewer collection agencies, collection law firms, and debt buyers in the market. Right now, we are in the midst of an M&A slowdown as decision makers on both sides of a transaction are taking more time to make informed decisions.
  

This review will be the last PDF report produced by Kaulkin Ginsberg’s information service, KG Prime. Going forward, all of our research will only be made available in a new, user-friendly model online. Stay tuned as we launch this fall.

To request your full copy of the report, please email hq@kaulkin.com.