M&A Action Remains Strong for Debt Purchasers and Collectors in First Quarter

The U.S. economic climate is causing buyers across many market segments to take a more cautious approach toward acquisition opportunities, but the size and number of M&A transactions in the accounts receivable management (ARM) industry is consistent with last year’s results to date, according to Kaulkin Ginsberg, the industry’s leading M&A and strategic advisory firm.

Strategic and financial buyers were primarily concerned with declining liquidation rates and challenges associated with accessing debt to finance transactions; however, the quarter ended with nine completed transactions, the same as Q107, and produced roughly $461 million in total deal value – more than three times the amount generated in Q107.