Everyday People Financial: Strengthening Revenue Cycle Management with CCS Group Acquisition

Everyday People Financial Corp. (TSXV: EPF) (OTCQB: EPFCF) has closed its acquisition of CCS Group Holdings Limited, a strategic move that bolsters its revenue cycle management business pillar and expands its market reach. The acquisition, announced on November 7, 2024, involves the purchase of 100% of the issued and outstanding shares of CCS Group, a leading debt collection agency in the United Kingdom. This article explores the implications of this acquisition on Everyday People Financial's growth, earnings, debt-to-equity ratio, and service offerings.

The acquisition of CCS Group Holdings Limited is expected to drive significant revenue growth for Everyday People Financial in both the short and long term. CCS Group, founded in 1988, is a well-established debt collection service provider in the UK, authorized and regulated by the Financial Conduct Authority. With a strong track record and commitment to service excellence, CCS Group is anticipated to contribute an annual EBITDA of C$1.1 million (£600,000) to C$1.4 million (£750,000) to Everyday People's revenue cycle management business pillar.



The acquisition is expected to have a positive impact on Everyday People Financial's earnings per share (EPS) and earnings before interest, taxes, depreciation, and amortization (EBITDA) in both the short and long term. The integration of CCS Group's revenue streams and cost synergies is expected to boost EPS and EBITDA in the short term. In the long term, the acquisition is expected to drive further growth and enhance Everyday People's market position in the UK debt collection market.



The acquisition may initially increase Everyday People Financial's debt-to-equity ratio due to the cash outlay and share issuance involved in the transaction. However, the long-term benefits of CCS Group's EBITDA contribution and potential debt reduction could ultimately enhance the company's financial stability. The acquisition was funded through equity and debt, including a C$6.0 million bank loan with a 5-year term, which may offset some of the positive effects on financial stability in the short term.



The acquisition of CCS Group Holdings Limited expands Everyday People Financial's service offerings and market reach by integrating a well-established debt collection agency in the UK. CCS Group's expertise in debt collection services in the UK complements Everyday People's existing revenue cycle management business. This integration allows Everyday People to expand its service offerings and tap into new markets, potentially increasing its customer base and revenue streams.



In conclusion, the acquisition of CCS Group Holdings Limited by Everyday People Financial Corp. is a strategic move that aligns with the company's focus on revenue cycle management and debt collection services. The acquisition is expected to drive significant revenue growth, enhance earnings, and expand service offerings, ultimately strengthening Everyday People's market position and financial stability. Investors should closely monitor the integration process and the company's financial performance in the coming quarters to assess the success of this strategic acquisition.