Portfolio Run-Out Companies

Making the decision to withdraw from the leasing and asset finance business probably means that you are re-focussing on shareholder returns and core competencies. Yet due to the recession, exiting in the traditional way via a sale may not deliver the best returns - a portfolio run-out could be more profitable. LPM Outsourcing (LPMO) can help you evaluate other strategic options to divest non-core operations which maximise their potential returns and cash flow.

When considering the best course of action for a divestment, you need to consider the following three questions:

  • Can the portfolio be sold at an acceptable price?
  • Would a run-out provide a better return than a sale in today's market?
  • LPMO has over 20 years' experience in managing run-out portfolios. Our outsourcing experts will take immediate control of your portfolio without disturbing the underlying cash flow and ensure the highest possible returns are achieved.

Outsourcing the portfolio run-out could well be the most profitable solution.

With 20 years' experience in managing work-out programmes for leading UK corporate recovery firms, LPM Outsourcing is a tried and tested partner who will take immediate control of the portfolio and secure the best possible cash return for its creditors.

Achieve maximum book value and financial returns Upon instruction, we take immediate control of your portfolio so you won't experience any interruption to cash flow and your customers will experience a seamless service, with LPMO acting as the face of your organisation.
Speed of data transfer If data migration is necessary, our systems experts will complete this within six to eight weeks. Alternatively we can work with your software platform.
Low initial costs All you pay for at the outset is the data migration and system configuration, with operational fees billed monthly.
Controlled running costs Operational fees are always tailored to portfolio size, condition and run-out profile. You won't have to pay a 'one cost fits all' price.
Immediate, expert support You have no recruitment costs and no worries about losing key staff. From day one, our team of dedicated staff will be available to manage your portfolio.
A bespoke system All the necessary processes and procedures will be set up for you, carefully engineered to meet the needs of each individual portfolio.
Specialists in distressed debt collection Should a customer default on their agreement, we have rigorous and professional collection procedures in place from day one.
Guaranteed service levels Our emphasis on service delivery means you will receive high levels of performance and operating standards, written into our contract with you.
Reduced risk We have robust, tried and tested disaster recovery procedures in place to ensure business continuity.
Client:
Sketchley Leasing
Service delivered:

Portfolio run-out programme for divested business unit
Gross receivables:
£45 million
Business volumes:
8,000 customer agreements

The client's requirement:

Following a strategic review, Sketchley Plc made a commercial decision to divest its interests in food and drinks vending. The management team had agreed upon an MBO as part of its exit strategy but did not wish to sell its £45m vending machine portfolio - a run-out was the most profitable option. To achieve this, Sketchley Leasing engaged LPMO to complete a run-out programme for its portfolio.

Sketchley's objective was to ensure it could maximise the collection value whilst ensuring there was no disruption to service levels for customers.

LPM Outsourcing's programme of action:

  • We were appointed to provide a run-out service for the divested portfolio. Our first task was to review the credit control systems and introduce measures to reduce the accounting cycles and restructured bad debts.
  • We then migrated Sketchley's operation to a single portfolio system and relocated the entire operation to LPMO's premises.
  • In the first 3 months of service, LPMO increased cash flow by 30%.