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Table of Contents

Lead Story

Up with DCC in down economy

News

Industry Update

One platform, one processor

Processing giants go separate ways

No advance for AdvanceMe appeal

Phoenix rising from MPI ashes

2008 Calendar of events

Association roll call - Part II

Features

Brazilian banks look to Linux for ATMs

Ulric Rindebro
ATMarketplace.com

Perfecting the art of portfolio sales

ISOMetrics:
Tourist tracker

Views

The facts on FACTA

Ross Federgreen
CSRSI

Education

Street SmartsSM:
Make low price low priority

Jason Felts
Advanced Merchant Services

Great branding on zero budget

Curt Hensley
CSH Consulting

Shop before you sign

Adam Atlas
Attorney at Law

Thriving in a secure payments world

Scott Henry
VeriFone

Bets are on in evolving payments space

Ken Musante
Humboldt Merchant Services

Allies in accountability

Jeff Fortney
Clearent LLC

Company Profile

International Bancard Corp.

New Products

PCI compliance and beyond

MerchantWARE
Merchant Warehouse

Fight shrinkage with small footprint

NCR RealScan 74 OFX
NCR Corp. and ADT Security Services Inc.

Inspiration

Prioritize with purpose

Departments

Forum

Resource Guide

Datebook

A Bigger Thing

The Green Sheet Online Edition

June 09, 2008  •  Issue 08:06:01

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FirstLook
Perfecting the art of portfolio sales

MerchantPortfolios.com Logo

#h4 Merchant Portfolios.com

Lane P. Gordon, Managing Partner
Adam Hark, Partner
481 Beacon Street, Suite 12A
Boston, MA 02115

Phone: 866-448-1885, ext. 307/308
Fax: 508-638-6444
E-mail: lane@merchantportfolios.com
Web site: www.merchantportfolios.com

When Lane Gordon and Adam Hark launched the MerchantPortfolios.com Web site in December 2007, their enthusiasm for the niche they had carved overshadowed initial skepticism from industry consultants who asked if buyers and sellers in the payments sphere needed an intermediary.

"This is one of the very few industries that companies, especially ISOs, start with the intention of selling right from the date of inception," said Gordon, Merchant Portfolio's Managing Partner. "Coupled with the fact their revenue streams can be quantified using a spreadsheet makes it a very interesting and fluid market."

Gordon entered the payments arena six years ago as an investor for a small ISO. He became more involved with the company when he saw the "level of activity in the space relative to the deals that were out there with regard to recurring, predictable revenue streams."

Hub for buyers and sellers

MerchantPortfolios.com is a full-service merger and acquisition firm brokering transactions on behalf of sellers in the payments and ATM-ISO industries. It provides an online marketplace for buyers and sellers of transaction processing and ATM portfolios, residuals, and ISOs.

According to Hark, a Partner in the business, the motivation behind the venture was to "maximize the selling price of merchant and ATM portfolio assets by getting as many buyers as possible to not only see them, but compete for them as well."

Hark and Gordon believed the traditional model of portfolio sales, in which sellers contact two or three potential buyers and try to negotiate the best deal, was inefficient.

"We do a tremendous amount of work behind the scenes to verify and validate that not only is a buyer legitimate and hopefully has made some degree of acquisition in the past, but that they are qualified to do an acquisition today," Gordon said. "And therein lies a fundamental problem with uninformed buyers who think they are shrewd negotiators.

"In the end, these guys are leaving a lot of chips on the table from dealing with companies who may not offer the best price because they've already spent their acquisition funds for the year."

Hands on the pulse

Gordon and Hark constantly re-evaluate the qualifications of potential buyers. Thus, MerchantPortfolios.com provides a unique, up-to-date window in terms of portfolios, residuals and ISOs potentially available for purchase in North America and Europe.

The partners said that, since their Web site has been up, they have helped large processors and ISOs with 15,000 to 20,000 merchant accounts to smaller ISOs with fewer than 1,000 merchants.

And by providing an online marketplace to hundreds of buyers simultaneously, sellers get maximum exposure.

"Once we have something that's for sale with us, we'd like to think that we can present it and get it out as fast as possible to the widest selection of qualified buyers," Gordon said.

"Then we can very quickly determine within that group, on behalf of the seller, who will be the absolute best fit for their particular ISO, residual, ATM or merchant portfolio."

Notice to readers: These are archived articles. Contact names or information may be out of date. We regret any inconvenience.

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