The Green Sheet published Part 1 of my column on ISO and residual value this week. The question behind it is the one I get every week: someone sends me a residual report and asks what it is worth, and they usually have a number in mind before anyone has looked at a merchant statement.
The column walks through the three things that actually set the multiple: the book itself (attrition, processor mix, how the residual is earned), what comes with the book (contracts, agents, production), and who the buyer is and why they are buying this quarter.
Read it at The Green Sheet. Part 2 runs next month.
For current ranges by portfolio profile, the Multiples Desk on this site and the residual buyout multiples guide at ResidualsForSale.com are updated as the market moves.