Portfolio Valuation

Until now, there have been only two ways to sell your portfolio:

1. Sell your existing portfolio to a company who will move your merchants to a new platform.
2. Sell your residual stream back to your processing bank or a company who pays a multiple based on monthly revenue.

Most ISO and MLS accounts are not set up to be portable. This limits these ISO's and MLS's to selling their residual stream. Valuations for residual streams are based on a few factors:

1. Number of merchants.
2. Monthly residual stream.
3. Length of time your merchants have processed through you.
4. The level of risk your merchants have.

Larger ISO's with thousands of merchants are valued differently than smaller ISO's and MLS's. These larger ISO's enjoy valuations from 36, 48 and even 120 months of their residual streams.

Smaller ISO's and MLS's are discouraged to find out that their portfolio valuation is only 15 to 21 times their monthly residual stream. This seems hardly worth the effort.

ISO Parachute’s Option Agreement* can help. ISO Parachute’s unique method of bundling your portfolio with other ISO's and MLS's creates an offering of tens of thousands of merchants that commands higher valuations. By joining ISO Parachute, your business can become part of an association of like minded companies and receive maximum payout for your residual stream.