Prepare Your Business or Book for Sale | The Art of Selling Your Payments Portfolio or Biz | PEP052

The Payments Experts Podcast

Anthony Malatesta, Principal at Wellesley Hills Financial (https://www.wellesleyhillsfinancial.com/) joins Global Legal Law Firm’s Christopher Dryden and Jeremy Stock to share crucial insights about positioning payment businesses for optimal valuation and successful exits.

What's the real difference between a merely profitable payments business and one that commands premium multiples at exit? According to Anthony Malatesta of Wellesley Hills Financial Group, it comes down to intentional preparation, data analytics, and strategic positioning.
The journey into payments is rarely planned. For Anthony, it began with an unpaid college internship that evolved into a career at the intersection of capital markets and payment processing. This unique perspective allows him to bridge operational realities with financial valuations – precisely what most business owners lack when focused on day-to-day operations.
Most payment professionals are shocked to discover how unprepared their businesses are for potential exit opportunities. When asked for basic operational information like employee compensation structures or downline agent contracts, many admit it would take weeks to compile – a deficiency that can slash millions from transaction values during due diligence. The businesses commanding premium valuations have systematized their operations, reporting, and financial management long before exit opportunities emerge.
While many industry voices have declared "the ISO model is dying" for over a decade, Anthony reveals a more nuanced reality. Traditional processing-only models face compression, but software-integrated payment businesses are securing extraordinary multiples – some reaching 80-90x compared to traditional 30x valuations. The market continues rewarding businesses that increase merchant stickiness through vertical-specific solutions and additional value-added services.
For payment professionals contemplating strategic positioning, Anthony emphasizes "product over price" approaches rather than racing to the bottom with rebates or cash discount programs. The most valuable businesses have shifted from transactional relationships to becoming essential operational partners for their merchants. This approach not only reduces attrition but creates multiple revenue streams that significantly enhance valuation.
Perhaps most critically, Anthony highlights the importance of understanding your business at a granular level – from attrition metrics to sales team performance analytics. These insights enable strategic adjustments that directly impact enterprise value, creating intentional pathways toward successful exits.
Ready to transform how you approach your payments business? Connect with Anthony and his team at MerchantPortfolios.com or WellesleyHillsFinancial.com to discover what your business is truly worth and how to maximize its value for your eventual exit.

Take control of your business future by understanding the true value drivers in your portfolio and building an intentional strategy to maximize them. Your exit value depends on it.

**Matters discussed are all opinions and do not constitute legal advice. All events or likeness to real people and events is a coincidence.**

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https://www.globallegallawfirm.com/

A payments podcast of Global Legal Law Firm

Chapters

1. Business Preparedness and Exit Planning (00:00:00)

2. Anthony's Journey into the Payments Industry (00:09:42)

3. Relationship-Driven Transactions vs Transactional Relationships (00:19:01)

4. Building a Business Plan with Exit in Mind (00:24:52)

5. Analytics, Attrition, and Business Value (00:31:20)

6. The Future of ISOs and Software Integration (00:37:18)

7. Institutional Capital and Market Opportunities (00:41:33)