Receivable Management Services Corporation (RMS)

The Story

Receivable Management Services Corporation (RMS) is a leading global supplier of Business Process Outsourcing (BPO) and Recovery Services headquartered in Bethlehem, PA. RMS has an impressive track record of accelerating DSO and injecting critical capital into business operations. They provide best-in-class outsourced solutions that improve DSO and accelerate cash flow for dozens of the world’s leading companies, including many of the Fortune 500.

Transaction Dynamics

A partnership with management to acquire a corporate divestiture from Dun & Bradstreet.

Investment Thesis

  • Established market leader in commercial collections with strong, positive demand drivers
  • Entrenched relationships with diverse “blue-chip” customer base
  • Strong historical operating performance
  • Experienced management team
  • Significant barriers to entry
  • Significant growth opportunities

Incline Value Enhancement

  • Completed two acquisitions in Mexico & Hong Kong
  • Extracted business out of large corporate entity to a stand-alone entity (e.g., new accounting platform and data center)
  • Transitioned business model from contingent collection to A/R outsourcing model which escalated customer switching costs
  • Migrated technology function to India
  • Top graded talent in business by recruiting senior leader from D&B as value-added board member and finance/IT professionals
  • Sold to financial buyer in 2005

Headquarters

Bethlehem, PA

Industry

Business Services

Investment Date

August 2001

Status

Realized

Fund

I

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