Last week, Corporate Advisory Solutions released its second quarter M&A activity report, spotlighting activity in the accounts receivable management industry. A copy of the report is available by clicking here. AccountsRecovery.net asked CAS to provide some context and perspective about the state of M&A activity in the ARM industry. Drew Sacher, an Associate at CAS, provided the following commentary:
M&A activity in the ARM (Accounts Receivable Management) vertical saw an increase in deal volume and count in the second quarter of 2023 compared to the first quarter of 2023. Delinquency rates for credit card payments have exceeded pre-pandemic levels, leading to concerns about a potential economic slowdown. The resumption of student loan payments in the fall is also expected to have significant economic implications. Auto loan delinquency rates have surpassed recession-era levels, primarily affecting the subprime tier. The use of text message carriers for communication with consumers will require registration, impacting the ARM industry’s communication channels. Despite a recent decline in inflation, retail sales have decreased, and consumers are turning to buy now, pay later (BNPL) services for smaller purchases. Consumers with higher education levels prefer digital communication and online payments. The evolution of AI in receivables management is progressing, but challenges remain in data utilization and compliance. Agencies should listen to industry feedback and consider the practical application of AI solutions to avoid compliance risks.
