Maximizing the Value of your Collection Agency Presented by: Gary Anzalone & Mark Neeb

Sales – Your Raison D’Etre Contracts Current and valid Signed, dated Term Client launch process Delineates client and agency responsibilities Legal review by your attorney Cataloged electronically for instant recall

Sales Staff “Hope is not a strategy” – Marco Trezza Clearly defined, achievable goals/written plan Measurement toward goals and spaced discussions Hunt don’t fish for profitable business Defined markets, minimum client sizes based on potential revenue Do they know both the “elevator story” and the long version of what the company offers? The company’s strengths and weaknesses? Your service offerings?

Sales Processes/Tools Defined, efficient, RFP response process Social media strategies Speaking opportunities Trade association involvement

Sales – Service Offerings Diversification opportunities – identify, profitable, marketing strategies, launch resources Front-end services, payment services, information gathering, industry specialization Buy vs. organic growth

Operations Portfolio segmentation Technical tools to improve speed and payment Collector pay and bonus strategies/formulas Letter/dialing strategies Data tracking/data points/trends Client goals/measurement/adjustments Collection goals vs. staffing CFPB “ready” Compliance certifications

Human Resources Collector staff to accounts/admin ratios Sourcing and hiring strategies Certifications for collectors Support structure – finance, legal, customer service, admin Outsource opportunities Record keeping

Human Resources - Training Dedicated staff- training Collector certifications Compliance knowledge/focus On-line mentoring Coaching strategies Incentives/rewards

Technology All software up-to-date Usage levels vs capacity Long-range planning for obsolescence/capacity/replacement Client access Dialer Payment technology Collection strategies – , text, other Phone system management Outsourcing opportunities

Compliance Focus on compliance is no longer an option Dedicated staff CCCO- required by CFPB and ACA CFPB “ready” Compliance culture Vendor management- ie., data security General Council and/or defense counsel on retainer Tied to compensation ACA resources – you’ve already paid for them

Financial Considerations Access to accurate data including historic info Must maximize EBITDA/profit margins, track trends and history Tie financials to budgets and prior year results Key number reports Variable vs fixed costs Cost of collections

Financial Considerations (cont) Tracking value of company compared to industry trends Outsourcing opportunities (buy what you know, rent what you don’t know)-extreme outsourcing Vendor management/RFP opportunities Bid services every 2-3 years

Reporting Management Client Costing system/client profit rankings Key indicators of success

Strategic Planning Internal vs external facilitation Business valuation and competitive industry analysis Banking relationships/access to capital Succession planning Bench Marking group Sale/merger considerations Who, how, when?

Summary Many of us have significant portions of our net worth tied up in our agencies. The fact is, in order for us to live our dreams later in life, we must maximize the value of our agencies so when the day comes to sell, grow or merge, we are ready. It’s never to early to start, but it could be too late. Don’t delay, start today!