TDX Group

Transaction Support - Due Diligence & Valuation

With increasing levels of consumer over indebtedness investors are increasingly considering the debt market as an alternative investment option.  The combined benefits of a growing industry alongside the improving clarity about how such assets perform make this a market worthy of further investigation.

TDX Group is using its unique data and industry-leading expertise to help investment groups understand and successfully invest in the consumer credit and non-performing debt markets.

Product Offering

We can work with investment groups to suit the requirements of a specific deal or a broader investment programme. Typically this takes the form of one of the following three types of engagement.

Market Due Diligence - helping potential investors better understand the consumer credit and debt markets. 

• Providing data and insight on the size of the current debt market, typical business models and future growth potential
• Comparing the key players in the market (including buyers and sellers), market shares and typical approaches adopted by each
• Forecasting future trends in the debt market, economic factors affecting the market and key risks
  

Case Study	Download
Market Study BC Partners needed a complete overview of the debt purchase market, quickly.

Deal Specific Due Diligence - evaluating the capabilities and value of investment targets.

• Evaluating servicing capabilities of creditors, debt collection agencies (DCA) and debt purchasers including processes, systems, data & analytics, and people
• Benchmarking DCA and debt purchaser collection performance for different asset types and customer segments
• Recommending required capability investments, performance improvement programs and cost saving opportunities
  

Case Study	Download
Deal due diligence Conducting due diligence to understand the structure and quality of debts for potential purchase.

Portfolio Valuation - Providing valuation support to investors on specific consumer credit and non-performing debt portfolios. 

• Forecasting and statistical analysis to predict future cash flows at a portfolio level
• Benchmarking of core model outputs against industry data on comparable portfolios and recommendations on strategies for value maximising liquidation
• Testing sensitivity testing of alternative TDX valuation scenario based on TDX view of appropriate model inputs/methodology
  
  

Case Study	Download
Portfolio due diligence Assessing the viability of investing in a sub-prime credit business.

Our Areas of Expertise

The scope of our engagements typically covers the following market areas:

The Debt Market

• Including detailed market insights and analysis, valuation of non-performing portfolios and evaluation of debt collection agencies and debt purchase businesses

Broader Consumer Credit Markets

• Valuation support for performing as well as non-performing consumer and SME portfolios across a number of asset types including unsecured, secured, utilities, telecom and hire purchase

UK & Europe

• Due diligence and portfolio valuation projects undertaken in support of investment opportunities in the UK and across continental Europe

When do we get involved?

We are typically engaged up-front to work with an investor to understand more about the market and identify potential targets. Following this initial analysis, we will work on specific deals to support due diligence and valuation.

Additionally, many investors engage TDX Group once they have identified a specific deal and are completing their due diligence.

For more information on our Due Diligence and Valuation offerings contact us at info@tdxgroup.com