Strategic Acquisitions

Whether buying or selling, experience in executing strategic acquisitions is important to achieving success in any sector. In the Payments Industry, success in buying and selling merchant contract portfolios can be greatly impacted by relationships and industry knowledge. At TSG, these areas are our forte. 

TSG’s clients include portfolio owners, potential portfolio buyers, and potential financial backers of an asset acquisition transaction. We have prepared nearly 60 valuation assessments of these properties since 2006, with individual values ranging up to $2.3 Billion. In aggregate, these analyses represent more than $5 billion in value. 

TSG’s Strategic Acquisition Services include:

• Due Diligence
• Corporate Strategies
• Strategic Partnerships
• Portfolio Value Recommendations
• Attrition Analysis

Due Diligence. We assist both buyers and sellers by acting as their advisor to either side of the asset transaction. We evaluate the financial strength as well as review business and unique software components such as third party contracts. We conduct in-depth assessments of each industry segment the buyer or seller represents so all parties have a clear understanding of the operation. We confirm revenue to cash positions as well as portfolio risk management assessment and identification of potential data security issues. 

Corporate Strategies. When and if you sell your company, The Strawhecker Group can provide effective exit strategies to take your business to a different level by implementing a structure that would ultimately maximize the price of the entity. Typically, a buyer is looking to expand to a niche or vertical they are interested in. Competition is substantive in these areas and we can assist by evaluating market niches on behalf of buyers and providing valuable details about that particular vertical. 

Strategic Partnerships – If a strategic transaction is not the exact course for your company at the moment, a partnership may be the answer. We can successfully match synergies of companies to entities in the investment community with the ability and want to make an asset investment, both U.S.-based and abroad. The result is higher profits for both as well as a higher degree of corporate success. Because of The Strawhecker Group’s extensive network and knowledge of the industry, we are constantly called upon to educate investment groups that are looking to get into the electronic transaction space. These newcomers to the business are hoping to invest for growth and we help them reach out to companies through asset management and/or funding. 

Portfolio Value Recommendations. The key factor in a successful asset transaction is understanding the value of portfolios. Value is the “amount a buyer is willing to pay.” The Strawhecker Group performs an extensive evaluation of value drivers to make sure you understand your portfolio so it can best be described to a potential buyer. We look at size of accounts, historical activity, historical attrition, merchant tenure, merchant contract terms, merchant profitability, type of merchant, new account sources, residual streams and risk underwriting practices. 

Attrition Analysis. The Strawhecker Group offers a unique method to analyze merchant attrition. If you are going to buy a portfolio, you need to know the merchant base. We assess attrition in a way that provides an overall view of the sustainability of the portfolio revenue. We examine the merchant base to determine its strengths and risks. 

No matter what particular service you require, The Strawhecker Group delivers it efficiently and effectively. Because of our size, our experience and our expertise, we move quickly. If you are thinking about buying or selling, let us come in and do a preliminary assessment to see what you require and how we can help you maximize the return on your hard work and investment. 

DISCLAIMER: TSG is a business broker and is not in the business of effecting transactions in securities for the account of others. We are not registered as a broker-dealer under federal or state securities laws. Accordingly, TSG does not provide services in connection with any strategic acquisition or other transaction that involves, or may involve, the purchase or sale of securities, including capital stock.     

Clients Comments

From the beginning of the deal, all the way through to the end, we were absolutely thrilled with TSG. I can’t think of anyone else in the industry I would go to, not just because I know Kurt and Jaime but because they have an entire team of people that we are very comfortable with. Their skill and professionalism is unparalleled at this level. 

Sean Mallean, President/CEO
Axeus 

We were very happy with the service and support we received from The Strawhecker Group. They were very professional and worked very closely with us. 

Derek Depuydt 
President, Business Development Services
Newtek Business Services