Credit Card Portfolio

Credit Card Portfolio Valuation

We’ve led the due diligence on 167 credit card portfolio valuation, sales and purchases, with our projects producing an estimated near $1B in pre-tax client profits.

Deciding to sell your credit card portfolio is never an easy decision to reach, especially considering the very reason the sale would generate a profit is the strong current and future earnings from the portfolio. When you divest, you give up that future earnings stream. Still, when an organization needs an immediate boost to earnings or capital, or both, the card portfolio becomes an even stronger contributor to shareholder value through a credit card portfolio sale, partial or total.

5 issuers sold their credit card portfolios last year. They ranged in value from $20MM to over $7 Billion. If we are retained as the investment banker to intermediate a portfolio sale, the following services are customarily provided:

Credit Card Portfolio Valuation & Sale

  • A net/present value estimate and transaction expectations are prepared.
  • A book of prospective bidders is built.
  • Bid instructions are prepared.
  • The Offering Memorandum is constructed and distributed to those known portfolio bidders most likely to be interested in the portfolio.
  • Discussions are held with potential bidders clarifying the portfolio characteristics.
  • Due diligence is coordinated, and letters of intent and contracts negotiated.
  • The transaction is closed.
  • The foregoing can usually be accomplished in 45-60 days, although shorter time frames can be accommodated.

For more details please visit our Services Page