DUBLIN, Ireland – Research and Markets has announced the addition of The Kaulkin Report: Accounts Receivable Management: A Growth Industry to their offering.
The Kaulkin Report, published in April 2005, details the state of the debt collection industry, including the key drivers of development, assessment of market sectors, and finally an outlook of the future of the industry, including the affects of pricing trends, mergers and acquisitions, and globalization. The Kaulkin Report has been the authoritative report for the collection industry and many have referred to it as the “industry bible”, a must-have for those interested in expediting their education on the industry or for those seeking to stay current with the affairs of the industry.
Who Should Buy This Report
- Collection agency owners, executives, sales people and operators who seek a better understanding of the competitive landscape
- Investors and analysts seeking a broad overview of the ARM industry
- Vendors seeking strategic insight into market forces impacting the industry
The U.S. accounts receivable management (ARM) industry includes approximately 6,500 companies that generated $15 billion in revenues in 2004, having grown at a compound annual rate of roughly 4% between 2000 and 2004. While public companies, private equity-backed firms and divisions of Fortune 500 companies compete in this industry, at least 95% of its companies generated revenues less than $8 million in 2004.
At more than 80 pages The Kaulkin Report 6th Edition details the state of the industry, including the key drivers of development, assessment of market sectors, and finally an outlook of the future of the industry, including the affects of pricing trends, mergers and acquisitions, and globalization.
- Size and growth of the contingency, debt buying, first party and legal collection markets
- Trends in debt levels, offshoring, technology vendors, mergers and acquisitions
- Legal and regulatory framework, including related enforcements and lawsuits
- Record amounts of personal, business and government debt held in the U.S.
- Cost savings that have been realized by large U.S. collections agencies
- Record volume of mergers and acquisitions in the industry
The report is broken down as follows:
Industry Drivers
Opportunities and challenges in the industry are based on five broad forces:
Credit Economy: Outstanding consumer, business and government debt exceeded $24 trillion at the end of 2004, having grown 75% annually between 2000 and 2004.
M&A: The industry is witnessing historic levels of deal activity, with $15 billion changing hands in 54 industry transactions during 2004.
Offshoring: The globalization of labor markets is reshaping the ARM industry, with companies moving offshore realizing net cost savings of up to 40% per seat.
Vendors: A growing number of specialized technology products and services from more than 200 suppliers are available to companies in the industry.
Legal Framework: A complex system of laws, regulations and related requirements has led to an increasing number of regulatory enforcements and debtor lawsuits.
Markets
These industry drivers have had different impacts on markets in the ARM industry:
Contingency: Companies providing third party collection services generated $95 billion in revenues in 2004.
Debt Buying: One of the highest profile and most dynamic parts of the ARM industry, 2004 revenues from debt buying are estimated at $3 billion.
First Party: With offshoring pressures on smaller companies offsetting growth for multinational firms, first party collections amounted to $18 billion in 2004.
Collection Law Firms: With revenues of $800 million in 2004, collection law firms comprise the industry’s smallest but fastest growing market.
Outlook
Competition within and between these markets suggests some likely developments:
Pricing: Contingency agencies will witness downward pricing pressure while debt buyers see fluctuations in the prices of debt portfolios. Firms with demonstrated expertise collecting specific types of debt will best weather changes in pricing.
M&A: Strategic acquirers and financial investors will fund most deal activity in the industry during the upcoming period of consolidation.
Offshoring: The ARM industry will continue to globalize, leading not only to lower labor costs, but also to the collection of new types of accounts in the U.S. and abroad.
Confluence: Customer relationship management and business process outsourcing companies will provide more ARM services, requiring larger ARM companies to alter their competitive strategies in order to compete effectively with these new entrants.
In sum, the ARM industry is large, diverse, sophisticated and poised for continued growth.
For more information visit http://www.researchandmarkets.com/reports/c19102.
