August 23, 2010

Variations on valuations

Residual valuations are always a hot topic because the value of a given merchant defines how much effort ISOs can afford to put into a deal. In trying to better understand the valuations from a merchant level salesperson’s (MLS’s) perspective, I posted the following question on GS Online’s MLS Forum:

“What is the going multiple on an MLS’s residual? Have you had experience getting a loan on your residual, and was that a better decision than an outright sale? What are the reasons to sell your residual versus getting a loan against your residuals?”