Kaulkin Ginsberg: Q3 2012 Outsourced Business Services Sector Review

Despite some significant upcoming events and their potential impact on the U.S. economy such as the Presidential election and the expiration of the Bush tax cuts, the outsourced business services (OBS) sector has continued to support an active merger and acquisition (M&A) market.

Get the whole story. Download the Report and get:

• Outsourced Business Services (OBS) Sector Overview
• Revenue Cycle Management (RCM) Industry Overview
• Customer Relationship Management (CRM) Industry Overview
• ARM Industry Overview
• Q3- Healthcare Collections – Regulatory and Legislative Update
• This is Not Your Daddy’s Debt Collection Industry
• Getting Ready for 2013 – Asset Class Diversification

A summary of how OBS companies have been valued in 2012

Overall, we expect the M&A market to remain active in the OBS sector for the rest of 2012, driven by the following trends:

• The U.S. healthcare RCM industry is growing and will continue to attract interest from strategic and financial buyers
• Strategic and financial buyers are continuing to pursue acquisition opportunities in order to support their own growth objectives
• Owners remain motivated to complete their transactions this year as they remain concerned about the possibility of capital gains tax rates increasing in 2013

Getting Ready for 2013 – Asset Class Diversification

For the past 2 decades the ARM industry has been dominated by ARM firms that either purchased and/or serviced credit card receivables. During this time the financial services market, most notably the consumer credit card sector, has represented 80% or more of total portfolio sales, with fresh paper (0 day charge-off) generating the bulk of total dollars spent.