Conditions for debt buying, specifically within the financial services industry, have not appeared this attractive since the Great Recession. Specifically, the debt buying segment’s revenue increased from under $2 billion in 2009 and 2010, to over $4.6 billion just five years later. That is why Kaulkin Ginsberg Company (KGC) has united with industry veteran Mike Chiodo to expand its advisory services to support this segment of the accounts receivable management (ARM) industry more extensively.
“Within the commercial banking sector, credit card net charge-offs grew by over 53.9% from $20.9 billion in 2015 to $32.1 billion in 2018; whereas credit union credit card net charge-offs more than doubled from nearly $800 million in 2013, to about $1.7 billion in 2018,” explains Jared Lese, director of research at KGC. “Since these two industries are among the primary originators of credit card loans throughout the U.S., we believe they’re somewhat representative of the financial services industry as a whole.”
“Although the credit card segment is experiencing greater bad debt levels and is a major contributor behind the decision to expand our service offerings,” explains Mike Ginsberg, president & CEO of KGC, “we’ve identified additional market segments, such as auto loans and FinTech, that may benefit.”
When asked why Mike Chiodo teamed up with KGC, he explained, “I have worked with KGC on several occasions over the last fifteen years and I’m pleased to be working with Mike Ginsberg and his team again during this exciting time of industry growth. Partnering with KGC was an easy decision as Mike and his team are experienced industry leading professionals.”
Supporting services that will be provided include:
Debt Portfolio Analysis and Valuation Services – Provide pricing and financial modeling for performing and non-performing receivable debt portfolios
Strategic Advisory Services – Review the buyer’s debt purchasing and liquidation strategy to determine if there are ways to improve performance
Liquidation Strategy Development Services – Support first-time debt buyers in developing their own liquidation strategy
Portfolio Management Services – Partner with creditors and debt buyers to generate and implement effective collection or sales strategies to maximize their liquidation strategy
Funding Diligence – Assist with the funding side of a transaction, such as through evaluating debt/equity funding partners
If you’re interested in exploring debt-buying or would like more information about this service, contact us at email@example.com.
About Kaulkin Ginsberg Company
Since 1991, Kaulkin Ginsberg Company has provided critical strategic advice to the outsourced business services industry. Our client-centric approach covers almost every stage of a company’s life cycle and enables us to maintain longstanding relationships as trusted advisors. We provide mergers and acquisition advisory, strategic consulting, valuation and financial solutions, market intelligence and analysis, as well as litigation support and expert witness.
About Mike Chiodo
Mike Chiodo has close to two decades in the industry starting with the NCO Group in 2001. He spent several years developing financial models leveraging various liquidation strategies that were accretive to standard methodology allowing NCO to acquire more charged-off portfolios and positioning itself as one of the largest Debt Buyers. Following NCO, he was recruited to serve as First Vice President by a national boutique firm that specialized in debt sales. Utilizing his experience, Mike built various collection platforms both domestically and offshore, culminating in him creating his own debt buying business. That business recently acquired and successfully liquidated a performing portfolio and origination platform specializing in auto lending. Over the years Mike has done many valuation assignments in both the US and the UK. Mike is well known in the industry as an expert witness and has several industry speaking engagements as well has been engaged as an expert witness.