Valuation Trading Multiples & Precedent Transactions: Debt Buying and Collection Companies
Valuation benchmarks for Debt Buying and Collection Companies. Access public trading comps, EV/EBITDA acquisition multiples, and private market data for pitch books and valuation analysis.
1.1 - Debt Buying and Collection Companies Market Context & Valuation Drivers
Companies in this public trading comparable group acquire and manage non‑performing loan (NPL) portfolios and deliver outsourced debt recovery and receivables management services across consumer and secured assets. Their business models blend cash collections from purchased portfolios with fee-based contingent collections, AR management, and payment processing, executed under compliance‑intensive operations. They are grouped as valuation benchmarks given similar portfolio underwriting, liquidation curves, regulatory exposure, and leverage‑driven returns.
Typical capabilities include NPL portfolio sourcing, underwriting, and pricing; portfolio investment and servicing; early- and late-stage collections via digital, call-center, and legal channels; settlement and restructuring; contingent third‑party collections; accounts receivable outsourcing; credit decisioning and optimization; payment management and portals; portfolio analytics and ERC forecasting; compliance and litigation management; and specialized services such as real estate owned disposition and government tax revenue administration.
Primary customers include banks, credit card issuers, consumer lenders, telecommunications and utilities providers, retailers, and municipal governments. Outcomes that drive valuation benchmarks include ERC growth and realization, cash collections and recovery rates, cost‑to‑collect and operating margins, portfolio amortization and impairment trends, vintage performance and ROIC, and stable fee revenue from contingency services, supporting predictable cash flow and disciplined capital deployment.
2. Valuation Analysis: Public Trading Comps & Multiples for Debt Buying and Collection Companies companies
2.1 - Public Peer Groups & Median Valuation Multiples for Debt Buying and Collection Companies sector
Comparable group 1: Debt Buying and Collection Companies
Axactor
- Enterprise value: $●●●m
- Market Cap: $●●●m
- EV/Revenue: ●.●x
- EV/EBITDA: ●●.●x
- Description: Provider of debt management services, offering digital solutions for managing non-performing loans, accounts receivable, and third-party collections to support financial institutions and individuals with debt recovery.
- Key Products:
- Non-Performing Loans: Investing in and managing portfolios of non-performing loans
- Third-Party Collection: Collecting debts on behalf of other companies
- Accounts Receivable Management: Managing accounts receivable for businesses
- Real Estate Owned: Managing and selling repossessed real estate assets
- Amicable Collection: Offering tailor-made solutions for debtors to settle debts amicably
Encore Capital Group
- Enterprise value: $●●●m
- Market Cap: $●●●m
- EV/Revenue: ●.●x
- EV/EBITDA: ●●.●x
- Description: Provider of debt recovery solutions and related services, purchasing portfolios of defaulted consumer receivables at discounts and managing them by working with individuals to repay their obligations, aiming to facilitate financial recovery.
- Key Products:
- Debt Recovery Solutions: Services for recovering unpaid debts
- Portfolio Management: Management of purchased consumer receivables portfolios
- Early Stage Collection: Initial stages of debt collection services
- Business Process Outsourcing: Outsourcing of financial processes
- Contingent Collection Services: Debt recovery services on a contingent basis.