Card Portfolio Sales and Valuations
Deciding to sell your 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 portfolio sale, partial or total.
19 issuers sold their portfolios last year. They ranged in value from $20MM to over $10 Billion.
Credit Card Portfolio Acquisitions
The development of a successful portfolio acquisition strategy requires an enormous amount of time and energy. It is important to note that 99% of the issuers are now competing for the 1% who choose to sell their portfolios. Without a sound strategy in place, what often happens is a buyer continues to look at every deal brought its way, bidding on a few, passing on most, and unfortunately, not successfully closing any.
Having transaction experience, not only as an intermediary but as a principal (both buyer and seller), in credit card portfolio deals makes us uniquely qualified to serve as your advisor. We understand the economics of the business and how to establish criteria by which you can accurately evaluate portfolio transactions.
A typical acquisition engagement runs approximately 45 business days and results in a document that details the following:
Expert Witness Testimony
We have represented a number of card issuers who, for a variety of reasons, find themselves in disputes that lead to litigation. Our expertise in this area is widely known in the credit card industry. Our valuation and damage findings have been used by law firms, internal counsel, and others.
“Who else were we going to go to, to sell our card portfolio? Your reputation is peerless, and ranked nationally. We wanted the best, and we got it in R.K. Hammer. Thanks for pulling off the deal for us.” -$1,000,000,000 Card Portfolio Seller
“You nailed the price right on, and saved us. In fact, the deal went down exactly as you predicted 2 months in advance. Thanks for your tireless efforts on our behalf, in the sale of our card portfolio.”
“If I were ever to buy or sell other card assets, I hope you are on my side. Within our company, we pay particular attention to three ‘Is’: Integrity, Intensity, and Intelligence. You possess all the qualities.” -“Top Ten” Card Issuer
“The sale plan you laid out for us was executed in every detail, from the first day to the closing. Not only did R. K. Hammer get us an outstanding price for our card assets, but you did it precisely in the time limit promised.” -$30,000,000 Card Portfolio Seller