Merchant Portfolio and ISO Sales
Our M&A advisory services are designed to assist clients through the entire M&A process, from strategic planning through closing. Our services are broken into two phases: preparatory consulting, which occurs before the purchase or sale (Pre-M&A), and transaction advisory, which is performed throughout the purchase or sale process.
We provide M&A advisory services to a wide range of clients from private equity firms and investment funds to payments processors, ISOs and payments technology companies.
Pre-M&A Advisory Services
- Understanding current market conditions and dynamics (market liquidity, perceived value drivers of buyers)
- Buyer targeting (creating buyer profiles, marketing methodology)
- Creation of offering memorandum ("the book")
- Development of preferred deal structure and consideration
- Marketing and presentation of the property to targeted buyers
- Facilitation of due diligence process
- Qualifying targeted buyers
- Negotiating with targeted buyers
- Deal management, facilitation and tracking
Access to capital continues to be a challenge for many privately held payments companies. Traditional lenders (banks) do not clearly understand the nature of merchant acquirer assets. Our team has long-established relationships with institutional investors, venture capitalists and Fintech entrepreneurs, who not only understand the nuances of payments processing assets, but often actively seek to put capital to work in the payments space, allowing us to identify the best capital partner for each client’s objective. Our team is well-versed in equity and debt financing structures, providing options and advice on how best to achieve clients’ financing needs.
Processor and ISO Contract Review/Negotiation
Understanding the content and key terms of the processing agreement is essential when determining a client’s rights and obligations. Exclusivity, pricing, liability, portability and minimums are only a few of the many factors of an agreement that affect not just how a client runs their business, but also how a potential buyer might value a client’s portfolio or company in a transaction. For clients contemplating a potential transaction, or those just thinking about making a change from their existing processor, MerchantPortfolios.com reviews the major agreement terms that govern the client-processor relationship. We also make recommendations and assist in negotiations to help achieve more favorable terms.
Merchant Portfolio and ISO Valuation
Our valuation services deliver unmatched analytical depth, providing clients with an independent and accurate third-party assessment of fair market value. We’ve spent years developing proprietary valuation models that address the unique characteristics of payment-related assets and platforms, from merchant processing portfolios to ISOs. We take both a quantitative and qualitative approach to valuation, utilizing sophisticated Discounted Cash Flow (DCF) methodologies and a proprietary database of completed transactions for deal comparison analysis.
Our Valuation Team is equipped to provide valuations for fairness opinions, gift and estate planning, stock-based compensation, legal dispute resolutions and strategic management planning.
Financial Forecasting, Budgeting and Portfolio Analysis
MerchantPortfolios.com assists clients with conducting financial analysis and compiling comprehensive projections of their business and portfolio performance. Our forecasting models and analytical capabilities help clients to better understand the specific metrics that drive growth. Working within the scope of bespoke engagements, our analysts set targets on KPIs to guide future decision making. Our services help business owners and management identify which segments of their portfolio require additional attention, whether or not their cash flows can support additional personnel, and whether their strategic investment decisions or future acquisitions will generate the desired rate of return.
Our services include:
- Segmented portfolio attrition analysis
- Income statement, balance sheet and cash flow projections
- Capital budgeting and investment decision support