Accounts Receivable Management

The U.S. accounts receivable management (ARM) industry has undergone a tremendous transformation since the start of the twentieth century. Initially, small collection agencies proliferated throughout the U.S. in the 1920s and 1930s. When creditors could not collect account balances on installment plans or retail accounts, these companies were hired on a contingency basis. During this time, debt collectors were either viewed as thugs who used intimidation to collect on debts, or mom-and-pop shops run out of a spare bedroom using an extra phone line.

By 1970, the modern U.S. credit industry was coming into its own. In turn, the amount of outstanding consumer credit grew sevenfold during the 1950s and 1960s, from $19 billion at the beginning of 1950 to $127 billion at the end of 1969. However, the trend toward a consumer credit economy led to the perhaps unexpected consequences of higher delinquency rates among consumers and the corresponding increased demand for debt collection services to address the issue.

As a result, Congress passed the Fair Debt Collection Practices Act of 1977, citing “abundant evidence of the use of abusive, deceptive, and unfair debt collection practices by many debt collectors.” The FDCPA would not only reshape the ARM industry for the better, but also convey government recognition of the important role debt collection plays in the U.S. credit economy.

Today, the ARM industry is an amalgamation of several market segments – debt collection, debt buying, collection law firms, and repossession services – that generated more than $14.5 billion in aggregate 2015 revenue and is projected to grow to more than $17 billion in annual revenue by 2020 at a compounded annual growth rate of more than 4 percent.

The industry is characterized by its sizable investments in advanced technological systems that support call-center and collection operations, and compliance divisions through voice and risk analytics software. As a result, the industry attracts interest among both strategic and financial buyers seeking economies of scale opportunities within a dynamic yet highly fragmented market.

While the ARM industry continues to evolve, Kaulkin Ginsberg is available to advise those ARM companies who are committed to maximizing their growth and exit objectives, as we have been since 1991.

As a result of the important role the ARM industry plays in the U.S. consumer credit economy, the industry will continue to evolve and attract interest from financial and strategic buyers. Kaulkin Ginsberg has served as a strategic consultant and transaction advisor to industry executives for decades, and prides itself on its knowledge and expertise the ARM industry.

We are excited about the potential within the ARM industry and look forward to working with owners and executives who are committed to achieving their growth and exit objectives.

If you are interested in receiving a copy of The Accounts Receivable Management Industry Overview, or would like to confidentially discuss your interests in the ARM industry, please contact a member of our strategic advisory team at hq@kaulkin.com.

 

 

 

 

LATEST BLOGS

The Impacts of the Recent Hurricanes on the Economy and the ARM Industry

October 19, 2017

In the past few months, the U.S. was devastated by a series of hurricanes. Do natural disasters have long- or short-term affects the accounts receivable management industry? ....

» see this post    » all posts


Are Effective Strategic Planning Resources Available for ARM Companies?

October 17, 2017

It's that time of year again. Owner-operators and executives are getting together to set plans for 2018. Are there any effective strategic planning resources available to the ARM industry?....

» see this post    » all posts


As Fragmented as You Can Get: Credit Union Industry Case Study

October 11, 2017

As part of our KG Prime market intelligence series, we studied five of the largest credit unions in the U.S. Find out our biggest takeaways, and what it means for the ARM industry.....

» see this post    » all posts


RECENT ANNOUNCEMENTS

Kaulkin Ginsberg Company Releases Middle Market ARM Benchmarking Report

October 12, 2017

Kaulkin Ginsberg Company announced it's release of the middle-market ARM Benchmarking Report available to KG Prime Universal members.....

» see more




Kaulkin Ginsberg Company to Release Exclusive and Comprehensive Index

September 13, 2017

Kaulkin Ginsberg Company will release an exclusive and comprehensive index detailing the economy's effect on the ARM industry. ....

» see more




The Kaulkin Ginsberg Fall 2017 Fellowship Semester Begins

September 12, 2017

Kaulkin Ginsberg Company, in conjunction with the University of Maryland, College Park's Department of Economics, began its fall 2017 fellowship semester earlier this month for the fourth year.....

» see more