APPROACH > Value Creation

There are three fundamental ways to create shareholder value:

• decrease the amount of capital required to run the business
• increase the revenues generated by the business
• decrease the expenses required to run the business.

When it comes to charged off receivables, CAPITAL can play a significant role along all three vectors of shareholder value creation.

Selling off under-valued assets through debt sales can be a significant source of “free capital” to reduce the overall capital needs of the enterprise. CAPITAL has particular expertise in generating capital from small and micro balance portfolios.

Debt sales can also be a means towards reduced expenses since you no longer need to maintain the infrastructure to service the accounts once they are sold.

Our portfolio management services typically focus on increasing revenues through more experienced and focused management of your charged off assets. Portfolio management can also result in lower expenses.

A CAPITAL consulting assignment might focus on any of the three shareholder value creation vectors. Assignments include

• selling or collecting on assets previously thought to be unsalble/uncollectable
• developing more cost effective strategies for collecting on small balance accounts
• developing sophisticated pricing models to make sure you obtain maximum value when you buy or sell
• increasing your collection revenues and reducing expenses by managing your portfolio in a more effective and efficient manner.

Case Study

A debt buyer found itself burdened with the mundane details of portfolio management ... [more]

Case Study

A prominent landline telecom provider was challenged with how to sustain their sale price in a declining market ... [more]

Case Study

An established collection agency wishing to set up a debt buying operation ... [more]

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