Vendor & Acquisition Due Diligence in the NPL Assignment

Resolving and bridging the information asymmetry, thanks to information and investigation experts, allows you to offer a reduction in risk in the sale of NPL or UTP portfolios. 

The NPL Due Diligence is a necessary phase in the sale of portfolios because it allows you to process advantageous management thereof in terms of acquisition and/or sale. The support that specialized companies such as CreditVision can provide for banks and investors by performing a Vendor or Acquisition Due Diligence, allows them to remain unscathed from risks and losses inherent to the so-called informative asymmetries.

But how do you conduct an NPL Due Diligence?

We at CreditVision support both the seller side and the investor side, depending on the needs and phase of the process in which we intervene.

CreditVision, as an information and data-analysis professional, is involved in the selling phase (buy-side & sell-side) to ensure remediation of the information gap, in order to minimize the risk and maximize the sender’s result, with special concern toward always keeping their reputation intact.

ASSIGNMENT SUPPORT (SELL-SIDE)

To minimize the risk of loss linked to the sale of the NPL portfolio and finalize the best possible agreement, while respectful of the seller’s reputation.

VENDOR DUE DILIGENCE

It consists of a support activity in the design of a sales strategy, in the negotiation and finalization phases thereof. Reducing the information asymmetry allows you to provide possible investors with a complete, reliable, and transparent dataset. Doing this means reducing the information gap between the seller and investor, with a consequent reduction in the perception of risk of the latter, who will be able to evaluate an already analyzed, clustered, and enhanced portfolio, thanks to the analysis of the attack ability various debtors.

Ultimately, the advantages are:

  • reduction of due diligence costs for the buyer;
  • a decrease in the perception of investment risk.

Which translates to:

  • increase in the price offered;
  • maximization of the benefits for the seller;
  • minimization of the risk of failure of the operation.

Essential in this regard is the data enrichment and data remediation operations:                      

  • DATA ENRICHMENT

It consists of the integration of data related to different banking franchises, to obtain an intact, structurally consistent, endorsed, and updated dataset. Further information that is needed to validate and complete the already known data collected by the mere documentary analysis include:

  1. Registry remediation;                                               d.Other bank accounts;
  2. Check residence and domicile;                                e. Value of the properties excluding encumbrances;
  3. Telephone numbers;                                                  f. Place of employment / other sources of income
  4. Official and reputational negativities;                   h. State of health/death

Through advanced OSINT and Cyber intelligence techniques, we recover huge quantities of data in a very short time. Human Intelligence is involved in the collected data’s evaluation and in the recovering of information that is undetectable from databases.

  • DATA REMEDIATION

We purify and reassemble data in a way that makes them easily usable and functional to the investor’s specific evaluation of the various credit portfolios.

Asset managers and information professionals certify and reorganize data through the creation of a data-room to be accessed by the investor, who will be able to easily evaluate the outcome and analysis of the aggressiveness of the various sub-portfolios.

PURCHASE SUPPORT (BUY-SIDE)

ACQUISITION DUE DILIGENCE  

We provide our clients with the necessary information to evaluate the in-assignment credit portfolio’s quality, through the dossier, produced by the seller, about the inquiry on the various asset’s real debt condition, to produce guidance in terms of the purchase operation’s opportunities.

Analysis and evaluation of the transaction’s risk pass through:

  • Desk analysis: screening of the available dossier, hardcopy and not, to delve into the data-set;
  • Evaluation of the recoverability of the different banking franchises for asset class;
  • Evaluation of the attack ability through the debt-positions analysis;
  • Restoration of the informative gap for the data-set put forward by the seller;
  • Selection of the most profitable portfolios or sub-portfolios;
  • Support in the economic terms’ negotiation;
  • Analysis, evaluation, and mitigation of the operation’s risks.

For over 50 years, CreditVision has successfully taken care of inquiries and credit management. Thanks to a team made of analysts, inquirers, negotiators, and attorneys, we offer personalized services for every case’s resolution.