October 21, 2019 by Vicki Brown
Once you have come up with the idea of selling your merchant portfolio, you should do some investigation before engaging with an investment firm. Usually, a crucial component of the portfolio acquisition process is its valuation. People who are interested in buying merchant portfolios for sale will perform critical analysis and review a few factors. It is crucial to undergo pragmatic self-assessment. You should apprehend some factors which contribute to merchant portfolio valuation.
Several factors collectively determine the value of the account, and each one of them is interrelated. You need to identify top drivers that emphasize the importance of merchant portfolio sales. You need to know that for each of the factors, the marketplace grasps the most optimal range, value, level, and type.
1. Several accounts - The number of considerations that includes your merchant portfolio is a contributor of value. Smaller portfolios trade will generate higher value revenue.
2. Age of Merchant accounts - New accounts include more exposure as there is not enough historical data for a guarantor to assure about future portability and stability. Older account has more track record, and there are more chances to be a better-established business. Also, they are less likely to leave their present payment processing sales providers.
3. Account Composition - This factor can be a complex one. Numerous factors include a valuable account composition. Brick and mortar POS vs. credit card portfolios for sale, Industry focus, Ratio of high-risk merchants in your portfolio, revenue concentration, and much more.
When you are considering selling your merchant portfolio, you should reach out to Clarus. The company can help you in many ways. Some of them are mentioned below:
Analyzing - Creating standard reports and tables for processing data.
Learn about business through the validating and understanding market trends and business performance.
Card brand reporting- Reducing the back office work required to compile and create the quarterly reports.
Merchant portfolio support- Real-time and historical information.
At Clarus, we help you to understand the potential advantages and disadvantages to come with credit card portfolio valuable whether you are merchant processing or independent service organization.