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

Options Abound for Sellers of Lower Middle Market Businesses

July 18, 2017

There is no shortage of buyers for a selling company in the lower end of the middle market. Sorting through all prospective buyer candidates to find the very best for your business is a challenge that any owner shouldnt take lightly.....

» see this post    » all posts


Changing with the Times: Cybersecurity in Collection

July 13, 2017

Collection agencies have a lot of valuable information that hackers are looking to get their hands on. Are you protected?....

» see this post    » all posts


Is Your Business Prepared for a Sale?

July 11, 2017

Preparing a business for a potential sale is not only a defensive move that an owner can take, but it is also prudent to business. Here are a few ways to make sure you're prepared.....

» see this post    » all posts


RECENT ANNOUNCEMENTS

Kaulkin Ginsberg Moves Its Market Intelligence Online

June 8, 2017

Kaulkin Ginsberg is changing the way busy owners, executives, and senior leaders access strategic market intelligence with the launch of KG Prime. KG Prime is a comprehensive and easy to use web-based service that provides users with economic, market segment, and other forms of strategic research.....

» see more




AXIAL FORUM - Publishes "Succession Planning - A Critical Missing Element in Many Family-Owned Businesses"

June 7, 2017

AXIAL FORUM, a web-based strategic mediator for the M&A industry, recently published an article succession planning by Topline Valuation Group. This article was co-authored by members of the Topline Valuation Group and Kaulkin Ginsberg team....

» see more




ACA of Texas Publishes "Three Critical Healthcare Industry Trends for Outsourced Business Services" in its Winter 2017 Magazine

March 16, 2017

The ACA of Texas Publishes "Three Critical Healthcare Industry Trends for Outsourced Business Services" by Kaulkin Ginsberg in its Winter 2017 Magazine. Kaulkin Ginsberg details its belief that the growth in patient lending and financing programs, clinical integration networks, and physician quality reporting systems for the Centers for Medicare and Medicaid Services (CMS) could have profound effects on companies focused on servicing healthcare providers in 2017 and beyond.....

» see more