What Factors Influence My Portfolio Valuation?
Account attrition
High account attrition rates indicates that there is a higher risk associated with the portfolio, thereby lowering a valuation. A portfolio has more value if accounts stay active in the portfolio for a long time.
Future revenue production
If you’ve built a sales engine that will continue after a new merchant is onboarded, the acquirer will be able to generate additional revenue from all new merchant accounts.
Portfolio size
The size of the portfolio is a factor that influences the valuation. A larger book of business will typically be valued higher than a smaller one.
Average account age
The average duration of time that accounts have stayed in your portfolio shows how sticky your merchants are and that is important to investors.
Account types & industries
We specialize in traditional and high risk merchant services. We can give you the best multiple possible on any payment processing vertical.
Agreement exclusivity
Most ISO agreements provide for a non-exclusive relationship between the ISO and processor. This will be evaluated as part of the overall portfolio value.
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