Project Description
Overview
I led the valuation and full sale process, orchestrating a competitive beauty contest for the disposal of a company specialized in non-performing loan (NPL) servicing and recovery for a major European banking group. The transaction formed part of an organizational realignment that relocated NPL management inside the bank’s perimeter and called for the divestment of the dedicated entity.
Client Profile
The seller was a pan-European banking group seeking cost rationalization and centralization of collections. The asset to be sold had a long operating track record on NPL portfolios with specialized processes and ring-fenced accounting, already suitable for third-party disclosure (information memorandum, historical series, operational KPIs).
Approach
I developed a defensible valuation based on cohort analysis and historical portfolio performance (2002–2006), projected forward under scenario assumptions and reconstructed normalized earnings over a five-year horizon. The work was documented in an expert valuation report and an Information Memorandum mapping recovery flows, variable costs, deferred taxes, and impacts on 2007–2011 pro-forma accounts. On process, I set long-list/short-list criteria, ran a structured Q&A and management meetings, and invited binding offers with contractual mark-ups, under clear rules on data access, timelines, and award criteria to ensure true comparability.
Results
The auction created genuine competitive tension and an orderly bidding curve. The outcome was a final price roughly twice the client’s initial expectations, with bank-ready documentation for diligence and closing (valuation, IM, data series, schedules). The information perimeter and methodology remain reusable for future disposals or similar securitizations.
