The total value of M&A transactions in the Accounts Receivable Management (ARM) industry will surpass any other year on record, if recent deal announcements close as expected this year. For the first half of 2006, there were 28 completed transactions, two significant pending transactions, plus other pending deals, representing an aggregate estimated deal value of $3.5 billion. By comparison, deal value for all of 2005 – a record year for deal activity – was just over $1.7 billion.

This surpasses last year's record-breaking $1.6 billion in deal activity, which includes all corporate events that involve a sale of equity: mergers and acquisitions, IPO and secondary offerings, joint ventures and strategic partnerships, and minority investments.

This record-breaking level of ARM deal activity is predominantly being fueled by the increased strength of the economy, growing levels of distressed consumer, commercial and government receivables, the receptivity of creditors to place or sell receivables, and the availability of funding for transactions within this industry.

"In 2005, companies and investors were well capitalized and motivated to buy or invest in well-run and growing companies, and the lending markets continued to provide abundant sources of cheap debt to help finance acquisitions. With these market trends, coupled with the ARM industry's ability to provide meaningful returns to investors, it is not surprising that a new record of total deal activity was achieved in 2005," said Mark Russell, Director at Kaulkin Ginsberg.

The debt purchasing sector was particularly active in 2005, generating more than 50% of the year's total deal value. Several leading debt purchasing and ARM companies were recapitalized or acquired in 2005, including Risk Management Alternatives, Collect America, Marlin Integrated Capital, Portfolio Management Group, and Resurgence Financial.