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Extrapolated out, the switch to EMV would result in a Additionally, there has been an unprecedented expansion
spike, or the risk of a spike, in an ISO or agent owner's of the types of buyers seeking merchant processing
portfolio attrition. I knew that buyers would begin to properties. The powerful confluence of payments and
assess the percentage of merchants who were EMV technology in recent years, by way of software-based
compliant in any potential portfolio or ISO acquisition business management solutions, has brought a new class
and quantify the risk associated with that percentage in of non-payments industry buyers into the fray, looking
their valuation modeling. As such, the net effect of the two to capture the additional revenue stream afforded by
catalysts would be a downward pressure on valuations. transactional payment processing.
A happy mistake A prediction for the rest of the year
And here we are, six months into the year 2015, in the I'm not making one. This red-hot market is keeping me
midst of the greatest seller's market and highest merchant way too busy for that. However, I'll leave you with this
portfolio and ISO valuations since the pre-recession highs little nugget of tried-and-true wisdom: nothing lasts
ended in the first quarter of 2008. forever. If you are thinking about an exit, or monetizing
your portfolio so you can invest the money back into
So what happened? How did we get here? Demand for your business, you will be the beneficiary of some
growth is quite simply extraordinary, and buyers are extraordinarily good timing.
paying big premiums to lift their top line revenue through
the acquisition of both static portfolios and ISOs with
high production sales channels. The EMV conversion Adam Hark is co-founder of MerchantPortfolios.com, a dba of Preston
factor exists, but has not weighed on valuations nearly as Todd Advisors Inc. With over a decade of experience in the payments
much as predicted, or at least not enough to outweigh the
demand. Portfolio and ISO properties processing through industry, Adam specializes in mergers and acquisitions, growth and
Total System Services Inc. and First Data Corp. are in exit strategies, and asset and enterprise valuation for payment pro-
particularly high demand, and are fetching record high cessing and payment technology companies. He can be reached at
valuations. adam@merchantportfolios.com or 617-340-8779.
Extrapolated out, the switch to EMV would result in a Additionally, there has been an unprecedented expansion
spike, or the risk of a spike, in an ISO or agent owner's of the types of buyers seeking merchant processing
portfolio attrition. I knew that buyers would begin to properties. The powerful confluence of payments and
assess the percentage of merchants who were EMV technology in recent years, by way of software-based
compliant in any potential portfolio or ISO acquisition business management solutions, has brought a new class
and quantify the risk associated with that percentage in of non-payments industry buyers into the fray, looking
their valuation modeling. As such, the net effect of the two to capture the additional revenue stream afforded by
catalysts would be a downward pressure on valuations. transactional payment processing.
A happy mistake A prediction for the rest of the year
And here we are, six months into the year 2015, in the I'm not making one. This red-hot market is keeping me
midst of the greatest seller's market and highest merchant way too busy for that. However, I'll leave you with this
portfolio and ISO valuations since the pre-recession highs little nugget of tried-and-true wisdom: nothing lasts
ended in the first quarter of 2008. forever. If you are thinking about an exit, or monetizing
your portfolio so you can invest the money back into
So what happened? How did we get here? Demand for your business, you will be the beneficiary of some
growth is quite simply extraordinary, and buyers are extraordinarily good timing.
paying big premiums to lift their top line revenue through
the acquisition of both static portfolios and ISOs with
high production sales channels. The EMV conversion Adam Hark is co-founder of MerchantPortfolios.com, a dba of Preston
factor exists, but has not weighed on valuations nearly as Todd Advisors Inc. With over a decade of experience in the payments
much as predicted, or at least not enough to outweigh the
demand. Portfolio and ISO properties processing through industry, Adam specializes in mergers and acquisitions, growth and
Total System Services Inc. and First Data Corp. are in exit strategies, and asset and enterprise valuation for payment pro-
particularly high demand, and are fetching record high cessing and payment technology companies. He can be reached at
valuations. adam@merchantportfolios.com or 617-340-8779.
