At TSG, we are fortunate to work with many different types of companies that are part of or interested in the payments ecosystem. Those who contact us when they’re considering an exit, i.e., selling their company to a financial or strategic buyer, include payment service providers of all varieties, fintech companies, and software companies.
When these conversations start, we hear some common themes. The first question is almost always: “What’s my multiple?” The second: “How quickly can you create a pitch deck or a Confidential Information Memorandum (CIM)?”
Both are good and reasonable questions. But when we’re approached with these, our recommendation for the next step is clear: start with an assessment and valuation.
Why a Valuation Comes First
A valuation isn’t just about putting a number on your company. It’s about understanding the story behind that number, and how to make it stronger. It answers critical questions like:
- Should you sell now, or wait to improve your position?
- Which aspects of your business will buyers pay a premium for?
- Where are the gaps that could slow down diligence or reduce your multiple?
Without these insights, you’re flying blind in a high-stakes process.
What a Valuation Really Delivers
Our team conducts a comprehensive review that goes far beyond financial statements. We examine the business through multiple lenses: portfolio performance, technology and product offerings, infrastructure and data security, sales channels, and the requirements to achieve scale through growth modeling. This broad approach is critical because the payments landscape has evolved dramatically, and lines between roles continue to blur.
Ultimately, this isn’t just about producing a valuation figure. It’s about what drives that number, what could detract from it, and what steps you can take to strengthen your position before going to market. A valuation done right becomes a strategic roadmap, helping you decide whether to sell now or invest in improvements that could significantly increase your outcome later.
The Cost of Skipping This Step
We’ve seen companies rush to market only to discover issues mid-process, whether from unclear KPIs or gaps in their growth narrative. Deals stall, valuations drop, and sometimes, the process fails entirely.
Contrast that with companies that start with a valuation-first approach. They enter the market with confidence, a compelling story, and leverage in negotiations. The difference in outcomes can be measured in millions.
Why TSG?
At TSG, we’ve advised hundreds of payments companies through valuations. Our valuation and readiness assessments are built for this industry, grounded in real data and expertise, and tailored to the unique dynamics of payments businesses. We don’t just give you a number. We give you clarity, strategy, and a plan to maximize your outcome.
Take the First Step
If you’re considering a sale—whether this year or next—the time to start is now. A valuation-first approach gives you the insight and confidence to move forward on your terms. Contact TSG today to schedule your valuation and position your company for success.
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