How our Business Works
About Payment Brokerage:
Founded by John and Jeff Sosville, Payment Brokerage was established to enhance services
for their FinTech clients of over 15 years. We believe acquisitions resemble short-term
partnerships that must deliver mutual value to maximize benefits for all parties involved.
We specialize in assisting FinTech and Payments companies in optimizing their acquisition
strategies. Our services include advising clients on valuations, business and value optimization, and deal negotiation.
How Payment Brokerage Works:
Payment Brokerage distinguishes itself by equipping buyers and sellers with comprehensive
insights for informed business decisions. Our commitment to honesty, reliability, and client
education ensures that customers understand every step of the buying and selling process.
With specialized expertise in the payment industry, we offer unparalleled service in this niche
market.
What we promise:
When working with Payment Brokerage, you can expect complete transparency throughout your transaction. We are committed to open and honest communication, ensuring both buyers and sellers feel comfortable and fully informed at every stage of the process.
Is it a Good Time to Sell?
Now is an excellent time to sell, as we’re experiencing a strong seller’s market. Recent consolidation in the payments industry has intensified market activity, with software companies striving for market share and processors seeking growth through acquisitions. Buyers are particularly interested in acquiring healthy, growing merchant portfolios.
Additionally, with a substantial influx of private equity, the current environment is highly favorable for sellers.
Why Payment Brokerage:
Our proven track record includes hundreds of successful fintech portfolio sales and strong relationships built over the years. We stay up-to-date on market trends, ensuring we know who will pay the highest price for your portfolio. When we market it, buyers will be competing with a distinguished group of financial, payments, and industry experts. We’re dedicated to maximizing your value.
What We Promise
While working with Payment Brokerage you can expect full transparency when it comes to your transaction. We promise to work openly and honestly with all clients so that both buyers and sellers remain comfortable and fully informed throughout the transactional process.
FAQ:
What is a “merchant portfolio”?
A Merchant Portfolio or bankcard portfolio, is a collection of business accounts that accept credit or debit card payments. Businesses that process these payments, whether online or in-person, are referred to as merchants by payment processors and ISOs (independent sales organizations), which act as intermediaries between merchants and payment processors. As a payment processor or ISO expands, it refers to its collection of merchant accounts as its merchant portfolio. Agents often refer to the monthly revenue generated from this portfolio as a residual or merchant residual.
Valuation:
To determine the value of your portfolio, consider the following key factors:
Portfolio Size
- Larger portfolios typically attract higher multiples.
- Portfolios over $100k/month receive better multiples than smaller ones.
- Portfolios over $1M/month can command even more favorable multiples.
Influencing Factors
- Account Attrition: Assess the rate of loss of merchant accounts.
- Revenue Attrition: Evaluate any decline in revenue from the portfolio.
- Portability: Determine if the payment company owns the merchant agreements, allowing for easier transitions to different processors, or if only residual streams are available.
- Merchant Type: Different types of merchants (identified by MCC or SIC codes) may have varying valuations.
- Transaction Type: Consider whether transactions are eCommerce or card-present, as this can impact value.
- Future Production: Include potential future merchant accounts that may be part of the portfolio sale.
By analyzing all of these factors, we both will get a clearer picture of your portfolio’s worth.
Jeff Sosville: Founder, CEO
Jeff has been involved in business acquisitions for 15+ years. During this time he has built 4 businesses and started 3 Boutique Brokerage Businesses. From experience he knows what it takes to run small businesses.
Jeff is a leader in valuation, consultation and buy/sell analysis of Fintech businesses, having sold over 150+ businesses in 35+ states.
Jeff enjoys working closely with both buyers and sellers and is committed to providing the necessary guidance to ensure they are making the best business decisions based on both personal and professional circumstances.
Every business is unique, and because of his extensive experience and established relationships with valuable resources within the industry he is able to guide your buying and selling needs from a position of expertise.
Call me anytime @ 888-430-5535
John Sosville: Partner, Broker
John has worked as an M&A advisor, investor and owner/operator for the last twenty years. Over the last 5 years, John has personally brokered over $100M in businesses/properties. John’s expertise lies in transactions of $5M- $30M in total value.
Recent business acquisition experience involved the purchase of a small Denver based business which our team of owners grew into a portfolio across Colorado, South Carolina and Georgia. The Fintech business was sold in 2013, valued in excess of $2.5MM.
John’s experience also includes successfully operating, building and owning four Fintech and
Managed Services companies over the last 10 years. John has over twenty years of strategic,
business development, and M&A work for Fintech and Technology companies. During this time John was able to grow the businesses he worked with at an average rate of 50% per year.
John is a Colorado licensed real estate broker and earned his undergraduate degree from Ft. Lewis College. He also attended internationally at the Ecole Supérieure de Commerce International duPas de Calais (ESCIP) in Longuenesse, France.
Call me anytime @ 888-430-5535
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