By Corporate Advisory Solutions
Monday, February 9th, 2015
As a result, companies that want to get bigger are looking at merging or consolidating with larger players that have more scale to attract clients.
“This is really becoming a big piece as to why you’re seeing small and mid- size M&A deals getting done today,” said Michael Lamm, managing partner of Corporate Advisory Solutions LLC in Philadelphia.
In May 2014, Account Control Technology Holdings acquired Convergent Resources Holdings. Convergent, which was an early consolidator of the collection industry, handles revenue cycle management services in the commercial, utility, cable, telecom and healthcare industries. ACT has been involved in the education, government and consumer markets since 1990. Both companies retained their established brands and operations.
“Clearly one of the reasons [ACT] did this deal was to diversify,” Lamm said. “They were able to expand their student loan expertise and pick up healthcare, telecom and commercial in the sale.”