Valuation Trading Multiples & Precedent Transactions: Nonbank Credit and Collections Companies
Valuation benchmarks for Nonbank Credit and Collections Companies. Access public trading comps, EV/EBITDA acquisition multiples, and private market data for pitch books and valuation analysis.
1.1 - Nonbank Credit and Collections Companies Market Context & Valuation Drivers
Companies in this trading comparable group are nonbank specialty finance providers focused on credit origination and recovery. Business models span purchasing charged‑off receivables, contingent and early‑stage collections, lease‑to‑own consumer financing, pawn lending, and asset‑based and venture loans. They are comparable because revenue is driven by yields on finance receivables and cash recoveries, with similar regulatory exposure, portfolio risk profiles, and capital intensity.
Typical capabilities include debt purchasing and portfolio valuation, contingent and early-stage collections across consumer and commercial receivables, outsourced receivables management and payment processing, credit decisioning and optimization tools, and business process outsourcing for finance operations. Many also provide lease-to-own programs, pawn lending, equipment financing, asset-based facilities, and growth or venture term loans, enabling liquidity solutions and risk-managed credit access for diverse borrowers.
Primary customers include credit issuers, retailers, telecom and utilities, government entities, and growth-stage businesses, while end borrowers span consumers and SMBs. Valuation benchmarks focus on revenue growth, gross and operating margins, net recovery rates or yield on finance receivables, credit losses and charge-off trends, cost-to-collect, capital efficiency, and portfolio IRR, which collectively reflect underwriting discipline and collection performance.
2. Valuation Analysis: Public Trading Comps & Multiples for Nonbank Credit and Collections Companies companies
2.1 - Public Peer Groups & Median Valuation Multiples for Nonbank Credit and Collections Companies sector
Comparable group 1: Nonbank Credit and Collections Companies
Intrum
- Enterprise value: $●●●m
- Market Cap: $●●●m
- EV/Revenue: ●.●x
- EV/EBITDA: ●●.●x
- Description: Provider of credit management services, offering solutions for debt collection, credit optimization, and financial services to improve cash flow and long-term profitability for businesses across Europe.
- Key Products:
- Debt Collection: Services for recovering outstanding debts and improving cash flow
- Credit Optimization: Services including credit monitoring, credit decision-making, and factoring
- Payment Management: Solutions for payment processing and collection management
- Portfolio Investments: Purchasing and managing overdue debt portfolios
- Strategic Markets: Customized credit management solutions tailored for specific markets
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.