Residual Market

Market Insights

Portfolio preparation checklist

Before discussing a valuation, organize the records that explain how earnings are generated. Preparation can reveal questions that a headline monthly residual figure does not answer.

Reconcile revenue

Compare month-by-month residual statements with receipts. Separate recurring earnings from one-off adjustments and identify contractual deductions, chargebacks or clawbacks. Record how many months of consistent history are available.

Understand retention and concentration

Track active merchants, departures and changes in contribution over time. Distinguish merchant-count attrition from residual-revenue attrition. Identify the largest contributing merchants and the effect of losing one.

Read the transfer provisions

Review assignment, termination, non-solicitation, servicing and processor-consent provisions in the actual agreements. A proposed sale structure should reflect the rights the seller actually controls.

Prepare a disclosure sequence

Begin with anonymous, high-level information. Agree confidentiality and permitted recipients before sharing detailed material. Keep a record of what was disclosed, to whom and for which purpose.