Valuation

Whether for internal use, appraisal purposes or third-party collateral review, Arrow has the experience to help firms understand the value of their consumer debt portfolios. The value of any portfolio will depend upon many factors including:

• Underlying credit quality of the accounts
• Timeframe over which the value will be derived
• An ordinary course business situation versus the impact of a change-of-ownership/operating environment
• Industry/competitive/macroeconomic conditions
• The servicing/collection/liquidation strategy employed

Arrow's experience as a full service solution provider coupled with our world class analytical capabilities, makes us uniquely qualified to assist with the full range of valuation scenarios. Our first step is to obtain a thorough understanding of the business context in which the valuation will occur. Our next step is to dive deeply into the data and understand how the portfolio's historical performance is likely to be impacted by the environment for which the valuation is being sought. Our final step is to relate the analysis back to the business case for which the valuation is being performed and review the implications and resulting strategies with our client. The end result is a valuation product that is both relevant and actionable.

The Arrow Advantage:

Unbiased Perspective—Unlike other firms that specialize in a specific solution, such as debt purchase or third party collections, Arrow is committed to remain a full-service solution provider. As such, we are not influenced by our own particular competencies and will never offer only a single solution for consideration. Instead, we present and clearly communicate several valuation scenarios, each unique in their assumptions, objectives and implications. The result is a more robust menu of options for our client.

Breadth and Depth of Expertise—Our multi-disciplined, diverse and talented team has significant experience not only in receivables management, but also in related areas such as credit and structured finance. This differentiating factor allows us to avoid "cookie cutter" answers and better serve our clients with remedies that are specifically tailored to their specific requirements.

Extensive Borrower Database—Arrow understands that in certain situations our clients may not have complete borrower information or payment history for accounts in their portfolio. Valuing a consumer debt portfolio with incomplete data is a significant challenge. However, Arrow's extensive database of borrower behavior allows us to "fill in" the missing pieces needed to provide a more complete picture of future portfolio performance and value.

Collaborative Approach—To ensure that the valuation is aligned to the business context and actionable, we make sure that our clients are involved throughout the process. Ultimately, the valuation is nothing more than a business decision making tool. We believe that to derive maximum benefit from the tool, our client must fully understand its methodology - including the inherent strengths and weaknesses.