Kaulkin Ginsberg Company, the leading source of information, research and advisory services for the debt collection and more broadly, the ARM industry, announces the release of its 2003 M&A activity results. Some of the highlights from the 4th quarter and full year of 2003 include:
4th Quarter Summary
The ARM industry ended 2003 with a huge bang, generating 18 transactions in the 4th Quarter that produced more than $US 675 million in total deal value! This represents one of the most active periods since the market crash of 2000. Of these 18 transactions, 17 were announced, including 8 acquisitions, 4 recapitalizations, 2 mergers, 2 public offerings, and 1 strategic partnership.
Highlights
Debt Collection & Debt Purchasing Industry
The debt purchasing industry continued to attract significant interest from both the public and private markets, producing 8 transactions that generated close to $250 million in total deal value. The debt collection industry also enjoyed a strong 4th Quarter, producing 8 transactions and more than $175 million in total deal value.
Customer Relationship Management (CRM)
There were continued signs of convergence between the ARM and CRM industries. NCO Group (NASDAQ: NCOG) made a major move into the CRM industry by announcing its intentions to acquire RMH Teleservices (NASDAQ: RMHT), an outsourced call-center company, for $89 million in stock plus assumption of $27 million in debt.
2003 Quick Review
- Second Highest Deal Value Year Since 1991 ($1,083 billion)
- Buyers were motivated to get deals done in the ARM industry (60 Deals Completed)
- Debt purchasing industry continued to generate steam (Strong activity in the 4th Quarter, $272 million in total deal value for 2003)
- Off shoring of ARM services and convergence of ARM/CRM activities continued (Most notably in the financial services industry)
Predictions for 2004
- Deal activity will continue at its torrid pace, fueled by strategic and financial buyers
- The ARM industry, particularly the debt purchasing sector, will continue to generate significant interest from the private and public markets
- The off shoring of ARM services will continue to grow, with particular emphasis on 1st and 3rd Party services
- ARM and CRM companies will continue to come together both domestically and internationally
- More industry veterans with expired non-compete agreements will re-enter the ARM market seeking opportunities to buy or build a successful ARM company
To view the entire report, click here. If you have questions, contact Mark Russell directly at 301-907-0840 ext. 120 or at mark@kaulkin.com.
About Kaulkin Ginsberg
Since 1989, Kaulkin Ginsberg has provided solutions to accounts receivable management and other business services industries. Our Strategic Advisory Division is the most recognized source of M&A, valuation advice, research, consulting, and executive search services for this sector. Through our SAGE program (Strategic Analysis, Growth and Exit), we work with owners and executives in their efforts to grow or exit their business. Kaulkin Media publishes the website CollectionIndustry.com™, as well as five electronic newsletters including Credit & Collection Daily™ and Debt Portfolio News™, and is the leading source of timely information for credit and debt collection professionals. Kaulkin Partners is a one-of-a-kind sales organization that seeks out the latest in technology and services for credit and collections, and makes them available through one convenient source.
