Listing ID: 77323
Confidential Information Memorandum (CIM) available upon receipt of our short online NDA – visit here: https://pronovapartners.com/engagement/portable-collections-agency-6mm-judgment-portfolio-for-sale/
This portable collections portfolio has about 5,000,000 +/- of collectable accounts on the books that are 0-4 years old. A portion of the accounts are also part of a roster of 300+ judgments for an additional $6.6MM as well. The judgments carry interest at 10% per year, all of them can be renewed, over and over, so in ten years this block is worth $12MM!!! The clients were very selective on whom they pursued, with only those debtors most likely to be paid as the ones selected. Clean operational history, no legal issues, C-corp. entity so ideally a stock sale would be best for tax efficiency purposes but we can deal with that later per Buyer preference if that’s a sticking point. NDA is required for internal report analysis, financial due diligence package, and the opportunity to do a conference call with the Seller.
Facilities: Relocatable nationwide.
Competition: Collections is a tough business mentally, however, the Seller has implemented a system within the collections space that treats people with dignity, gets the account squared away, and results in a profitable enterprise.
Growth/Expansion: Existing replicatable template in place to be scalable for a more motivated owner operator. Other opportunities could be nurtured if someone with more enthusiasm for the business took over.
Financing: If the price and deal structure is right.
Support/Training: As needed.
Reason Selling: Retirement.
- Asking Price: $250,000
- Cash Flow: $110,000
- Gross Revenue: $263,000
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: 1958
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:1
- Furniture, Fixtures and Equipment:N/A
Collections is a tough business mentally, however, the Seller has implemented a system within the collections space that treats people with dignity, gets the account squared away, and results in a profitable enterprise.
Existing replicatable template in place to be scalable for a more motivated owner operator. Other opportunities could be nurtured if someone with more enthusiasm for the business took over.
The company was started in 1958, making the business 64 years old.
Why is the Current Owner Selling The Business?
There are all kinds of reasons why individuals choose to sell businesses. Nonetheless, the genuine reason and the one they tell you may be 2 entirely different things. As an example, they may say "I have too many various commitments" or "I am retiring". For lots of sellers, these reasons stand. But also, for some, these might just be excuses to try to conceal the reality of changing demographics, increased competitors, current reduction in profits, or a variety of various other factors. This is why it is really crucial that you not count totally on a seller's word, yet instead, utilize the seller's response along with your total due diligence. This will paint a much more practical image of the business's current circumstance.
Existing Debts and Future Obligations
If the existing business is in debt, which lots of companies are, then you will need to consider this when valuating/preparing your offer. Lots of companies take out loans in order to cover items such as supplies, payroll, accounts payable, and so on. Keep in mind that sometimes this can suggest that revenue margins are too thin. Numerous businesses fall into a revolving door of taking loans as a way to pay back other loans. Along with debts, there may likewise be future commitments to consider. There may be an outstanding lease on tools or the structure where the business resides. The business may have existing contracts with suppliers that should be met or might lead to charges if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do operating businesses in the location bring in new consumers? Often times, operating businesses have repeat consumers, which form the core of their day-to-day profits. Specific aspects such as new competitors sprouting up around the area, road building, and staff turnover can influence repeat customers as well as adversely affect future earnings. One essential thing to think about is the placement of the business. Is it in a very trafficked shopping mall, or is it concealed from the highway? Clearly, the more people that see the business regularly, the greater the opportunity to construct a returning consumer base. A final thought is the general area demographics. Is the business placed in a largely inhabited city, or is it located on the outside border of town? How might the local median house earnings impact future earnings potential?