William Blair advises Asset Acceptance Capital Corp.

Wednesday, June 19, 2013

William Blair & Company acted as the exclusive financial advisor to Asset Acceptance Capital Corp. (NASDAQ: AACC) in connection with its sale to Encore Capital Group, Inc. (NASDAQ: ECPG). The transaction closed on June 13, 2013 and marks our 19th closed transaction in the accounts receivable management (ARM) space since 2002.

Transaction Highlights:

  • Long-standing relationship: William Blair has a longstanding relationship with Asset Acceptance and has worked previously with company. William Blair was a co-manager to Asset Acceptance’s initial public offering in 2004 and the sole underwriter to the firm’s follow-on offering in 2005. Asset Acceptance has been covered by William Blair’s equity research group since 2004.
  • Execution excellence: William Blair’s team worked diligently to negotiate a stock component to the transaction. Asset Acceptance shareholders had the option to receive their consideration in cash or Encore Capital stock, with the aggregate stock consideration capped at 25% of the total equity consideration, thereby allowing them to participate in the upside as a result of the business combination. Between signing and close, Encore stock traded up 27.4%.
  • Industry expertise: In addition to the Asset Acceptance transaction, William Blair recently announced the sale of Cabot Credit Management, a portfolio company of AnaCap Financial Partners, to J.C. Flowers for an undisclosed amount. These recent transactions further extend William Blair's global leadership position in the ARM industry.


“The board selected William Blair to represent AACC in this transaction because of William Blair’s extensive expertise in the ARM sector, their support of AACC over the years, and their direct senior-level access to the likely financial and strategic buyers,” said AACC Chairman Gene Lockhart. “We were impressed with their team’s structural and tactical advice on the process and their ability to get potential buyers actively engaged on tight timelines. Moreover, we were also very pleased with the hands-on senior-level attention we received from the William Blair team from start to finish.”

Parties Involved:

Headquartered in Warren, Michigan, Asset Acceptance has been purchasing and collecting receivables portfolios for more than 50 years. Asset Acceptance is a leading purchaser and collector of charged-off consumer accounts receivable portfolios in the United States. Asset Acceptance’s deep expertise in collections across a wide range of consumer asset classes and delinquency stages is supported by an industry-leading, in-house legal collections department.

  • In CY2012, Asset Acceptance grew year-over-year revenues by 4.1% and cash collections by 5.1%
  • At the time of sale, Asset Acceptance had more than $1,188 million in estimated remaining collections from its existing receivables portfolios

Encore Capital is a leading provider of debt management and recovery solutions for consumers and property owners across a broad range of assets. Through its subsidiaries, Encore Capital purchases portfolios of consumer receivables from major banks, credit unions, and utility providers, and partners with individuals as they repay their obligations and work toward financial recovery. Encore Capital is headquartered in San Diego.

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