In today’s competitive market, effectively identifying strategic advantages and disadvantages of a credit card portfolio to develop a strategy for launching or re-launching a card portfolio has never been more important.
The Mergers and Acquisitions Portfolio Strategy (MAPS) solution helps to quickly analyze the account characteristics of a credit card portfolio. This information is critical when a purchase bid must be submitted quickly, resources are limited, and mistakes can be costly. Argus assists both bidders and sellers in credit card portfolio M&A transactions.
Bidders
Accurate analysis of a credit card portfolio is
essential to make an informed purchase bid. Small errors have multimillion
dollar valuation impacts. It is critical to understand:
- Metrics used to value the portfolio (eg, risk, acquisition)
- Sellers short term strategies used to temporarily boost portfolio metrics
- Performance of similar competitive portfolios
Making an informed bid to acquire a portfolio is challenging:
- Valuation must be accurate
- Synthesis of data in various formats, quality, and sources from production systems that may not be familiar
- Tight timelines at each stage of the bidding process
- Lack of dedicates resources
- Uneven distribution of work (all or nothing)
MAPS converts account level data into a standard set of 125 reports and custom analysis in a very short timeframe. Typical Deliverables and timeline:
- Day 0 – Data delivered to Argus
- Day 4 – Data validation report
- Day 8 – 125 standard reports
- Day 10 – Custom analysis
- Processed in Argus’s IT environment
Sellers
Producing accurate account-based data and relevant
reports that can reconcile to the account level data is critical to the sale.
Creating this information can be challenging:
- Data may need to be sourced from production systems. Sourcing data from production systems is time consuming and requires understanding of the systems
- Creating reports relevant to the bidders requires experience
- The reports must reconcile to the account level data
- The timelines are short and FTEs are not familiar with the process
Our solution can:
- Create the necessary account level information and reports in a short timeframe
- Source data from any production system or data warehouse
- Provide standard report templates
- Populate the reports
- Create account level files to send to the bidders