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Deal Value in ARM Rises in 2016

Rockville, MD – January 19, 2017 – Insight into the ARM industry’s M&A deals of 2016 will be available next week, according to industry M&A specialist Greenberg Advisors, which will publish its data and analysis, highlighting observations in industry M&A transactions.

The aggregate deal value was a substantial $3.7 billion, 8% higher than 2015, though fewer ARM transactions were completed in 2016.

This increase is due in part to increased creditor consolidation and regulatory oversight, which have required ARM firms to handle greater volumes, as clients grow in size and reduce the overall number of vendors that they utilize. In growing to meet that challenge, these more robust, compliance-focused collection agencies have become attractive acquisition targets to different groups of buyers, including financial buyers.

“Investors are demonstrating an active interest in the ARM industry, as they acquire the companies they believe are well-positioned to benefit from further consolidation among creditors and vendors,” said Brian Greenberg, CEO of Greenberg Advisors. As a result of this trend, 2016 median transaction value doubled, going from $10 million to $20 million, as 25% of deals involved sellers with over $50 million in revenue.

Zach Eisenberg, Associate at Greenberg Advisors, added, “Smaller deals are of interest, too, and they dominate the number of transactions completed, most often with strategic buyers. Given our activity throughout the sector, we have extensive relationships with strategic buyers for all types of transactions.”

The M&A Update discusses these and many other M&A trends, expectations, and factors shaping the market, including the recent procurement of the federal Department of Education contract.

About Greenberg Advisors
Greenberg Advisors, LLC provides trusted M&A and strategic advice within the financial services and business services sectors worldwide. The firm is best known for its expertise in Accounts Receivable Management (ARM), Revenue Cycle Management (RCM), Business Process Outsourcing (BPO), and Specialty Finance. Focused on these interrelated sectors for nearly 20 years, the firm’s professionals offer a comprehensive, yet highly specialized perspective from which to advise clients, which has resulted in the completion of over 125 merger & acquisition (M&A), capital raising, valuation, and strategic advisory transactions. These client successes reflect its distinct client-first approach, objective point of view, deep sector expertise, and roll-up-the-sleeves work ethic. Follow the firm on Twitter @GreenbergAdvsrs.