Private Equity Raises 2006 ARM M&A Deal Value to Historic Levels.Kaulkin Ginsberg foresees an increase in strategic acquisitions within the Accounts Receivable accounts receivable n. the amounts of money due or owed to a business or professional by customers or clients. Generally, accounts receivable refers to the total amount due and is considered in calculating the value of a business or the business' problems in paying Management Industry in 2007 BETHESDA, Md. -- Thanks to two blockbuster transactions in the fourth quarter, merger and acquisition activity in the Accounts Receivable Management (ARM) industry set a new deal value record of $3.1 billion in 2006, according to Kaulkin Ginsberg, a strategic advisory and research firm that tracks the ARM industry. "2006 is the third consecutive year of record-breaking deal value, almost doubling last year's results," said Mark Russell, Director of the firm's Strategic Advisory Group. "However, due to the number of large transactions that occurred in 2006, this record is not likely to be repeated any time soon." The big story of the year was private equity investment, which was the major factor in this deal value surge. Key private equity transactions included the management-led buyout of NCO Group (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :NCOG NCOG NCO Group (stock symbol) ), funded by One Equity Partners for $1.26 billion; and the recapitalization of West Corporation (NASDAQ:WSTC WSTC White Sands Test Center WSTC Westinghouse Science and Technology Center WSTC Washington State Transportation Center WSTC Wrapped Space-Time Coding WSTC World Standard Teletext Codec ), sponsored by an investor group led by Thomas H. Lee Partners  This article or section is written like an .Please help [ rewrite this article] from a neutral point of view. Mark blatant advertising for , using . Thomas H. , L.P., and Quadrangle quadrangle Rectangular open space completely or partially enclosed by buildings of an academic or civic character. The grounds of a quadrangle are often grassy or landscaped. Group LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control . for $4.1 billion. Kaulkin Ginsberg estimates the ARM-related deal value of these two transactions amounted to $1.625 billion. Other notable deals included Nikko Principal Investments Limited acquisition of Cabot Financial, a leading UK debt purchaser company, for $478 million; and Texas-based Lone Star Funds Lone Star Funds is a worldwide private equity firm based in Dallas, Texas, that specializes in purchasing distressed companies and assets, often well-known consumer brands that have seen better times or gone through financial difficuties due to leveraged buy-outs. purchase of B-Line, LLC., a Seattle-based debt purchaser. Looking ahead to 2007, Kaulkin Ginsberg expects activity to remain high, but the key drivers of activity will shift from platform investments to strategic acquisitions. "We are aware of several large deals pending that may close in the first quarter of 2007," said Russell. "Although platform acquisitions will continue, we anticipate a substantial increase in the number of strategic investments by existing industry players." He added there will be more aggressive interest in growth through add-on acquisitions -- especially from private equity investors who are already in the space. That may drive interest in smaller, growing ARM companies with specializations in niche markets. About Kaulkin Ginsberg Company Kaulkin Ginsberg provides solutions to accounts receivable management and related business services companies. The Strategic Advisory Group provides merger, acquisition, and valuation advice; custom research; operational consulting; and executive search services. Kaulkin Media publishes the most popular sources of ARM industry information such as insideARM.com[TM] and The ARM Insider[TM]. Kaulkin Information Systems provides secure and affordable document and process management technology. Read more about Kaulkin Ginsberg at www.kaulkin.com. |
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