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