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is the average net revenue multiple from
~100 merchant portfolio/enterprise
transactions over the past 10 years
FOR DISCUSSION PURPOSES ONLY. © COPYRIGHT 2019. THE STRAWHECKER GROUP. ALL RIGHTS RESERVED.
Visit Payments
Analytics Month
3.9
Overall, the multiples range from 1X to 7X – reflecting the basic
value components that make up the core value of any business.
WEEK 4: M&A
Note: Multiple is based on annual net revenue after residuals are paid
FOR DISCUSSION PURPOSES ONLY. © COPYRIGHT 2019. THE STRAWHECKER GROUP. ALL RIGHTS RESERVED.
WEEK 4: M&A Visit Payments
Analytics Month
Drivers of Merchant
Portfolio MultiplesMerchant, volume, and net revenue growth
Vertically Specialized and/or diversified merchants
Merchant, volume, and net revenue attrition
Unique technology/IP that adds value
Revenue/expense structure that drives profit
Large/small merchant concentration
is the average transaction value
increase across all industries in
the U.S. last year
FOR DISCUSSION PURPOSES ONLY. © COPYRIGHT 2019. THE STRAWHECKER GROUP. ALL RIGHTS RESERVED.
Visit Payments
Analytics Month
20%
Globally this number is at 9%
WEEK 4: M&A
FOR DISCUSSION PURPOSES ONLY. © COPYRIGHT 2019. THE STRAWHECKER GROUP. ALL RIGHTS RESERVED.
Visit Payments
Analytics Month
20+
the number of payments-related ISV purchases through Q3
is the number of publicized
ISO sales in the U.S.
&
WEEK 4: M&A
Public payments companies grow
at a compounded rate that is 13%
higher in comparison to the S&P 500.
FOR DISCUSSION PURPOSES ONLY. © COPYRIGHT 2019. THE STRAWHECKER GROUP. ALL RIGHTS RESERVED.
Visit Payments
Analytics Month
13%WEEK 4: M&A
FOR DISCUSSION PURPOSES ONLY. © COPYRIGHT 2019. THE STRAWHECKER GROUP. ALL RIGHTS RESERVED.
Visit Payments
Analytics Month
34%WEEK 4: M&A
of North American/European transactions,
across all industries in 2018, were completed
by private equity
FOR DISCUSSION PURPOSES ONLY. © COPYRIGHT 2019. THE STRAWHECKER GROUP. ALL RIGHTS RESERVED.
WEEK 4: M&A Visit Payments
Analytics Month
When looking at merchant portfolios,
buyers often focus on financial metrics:
Gross Revenue % of Volume – charged to merchantPrice
Profitability
Attrition & Growth
Total Net Revenue % of Volume – earned by acquirer/ISO
before downstream payments
Annual Account Attrition - % Merchant Accounts that
stopped processing and no longer generate revenue
Annual Volume Gross Attrition - % volume loss on
attrited accounts
Change in Retained Account Volume – annual volume
change in merchants retained
Annual Volume Net Attrition – Annual
FOR DISCUSSION PURPOSES ONLY. © COPYRIGHT 2019. THE STRAWHECKER GROUP. ALL RIGHTS RESERVED.
Visit Payments
Analytics MonthWEEK 4: M&A
Below is a sample of payments-related acquisitions/investments made over the last quarter:
FOR DISCUSSION PURPOSES ONLY. © COPYRIGHT 2019. THE STRAWHECKER GROUP. ALL RIGHTS RESERVED.
Visit Payments
Analytics MonthWEEK 4: M&A
TSG’s methodology behind valuing and assessing merchant portfolios:
FOR DISCUSSION PURPOSES ONLY. © COPYRIGHT 2019. THE STRAWHECKER GROUP. ALL RIGHTS RESERVED.
Visit Payments
Analytics Month
Contact us to learn more.
TSG Recently Advised
TSG Has Advised For Many Leading Companies in the Payments Industry
In the acquisition of
TSG Recently Advised
On their investment in
In a merchant portfolio purchase from
On their investment in In its merger with
On their fundingevent with
In the acquisition of
In its recapitalization of
In due diligence support of its investment into
On their fundingevent with
In its sale toIn its merger with
In the acquisition of
In the acquisition of
On their investment in
In acquisition of the operation assets of
In the acquisition of
In the acquisition of
On their investment in
With their joint venture with
On the organization of its joint venture with
&
In the acquisition of
In the acquisition of
In its sale to
TSG Has Performed Transaction Due Diligence:
&
ANALYTICS + CONSULTINGThe Strawhecker Group (TSG) is a fast-growing analytics and consulting
firm. The company serves the entire payments ecosystem, from fintech
startups to Fortune 500 companies. The firm provides its clients with
advisory services, research and analytics to help them plan and execute
their strategic initiatives. Based in Omaha, a recognized payments industry
hub, TSG is an established leader in this high-growth, ever-evolving space.
1,000+Clients advised,
including many in the Fortune 500
40+Of the top 50 merchant acquirers served, including 7 of the top 10
23+ YearsAverage
Associateexperience in the
payments industry3.7+ MillionCard-accepting merchants in TSG’s AIM analytics platform, driving millions of dollars in ROI for its users
250+Completed payments company valuations; as well as ~30 buy/sell/investment advisements