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  1. #1

  2. #2
    Senior Member Reputation points: 86751
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    if you study all the mca companies who get acquired, there is a common theme. they were all free standing mca providers only with one product essentially. the companies who buy them are multi product focused and mca didnt make up a large % of their revenue. perhaps, the reality is, a single standing mca is not the way to go anymore with so much competition and other variables happening in the market unless you are ok remaining a boutique funder and that's all you want to be. this sale will have implications to future mca's looking to exit as well.

  3. #3
    Senior Member Reputation points: 44858
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    marcus called this scenario 2 years ago. what a genius that man was....someone bring up that post...

  4. #4
    Senior Member Reputation points: 39157
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    Quote Originally Posted by fundingsmbs View Post
    if you study all the mca companies who get acquired, there is a common theme. they were all free standing mca providers only with one product essentially. the companies who buy them are multi product focused and mca didnt make up a large % of their revenue. perhaps, the reality is, a single standing mca is not the way to go anymore with so much competition and other variables happening in the market unless you are ok remaining a boutique funder and that's all you want to be. this sale will have implications to future mca's looking to exit as well.
    YES. I co-sign this.

  5. #5
    Member Reputation points: 434
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    There is no way in 2020 an MCA funder or brokerage firm can do just MCAs and expect to still be in the finance world 5 years from now.

  6. #6
    Senior Member Reputation points: 216519
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    I guess OnDeck has products beyond lending that it was worth buying them for.....
    https://debanked.com/2020/08/odx-int...king-platform/

  7. #7
    Quote Originally Posted by abfunders View Post
    I guess OnDeck has products beyond lending that it was worth buying them for.....
    https://debanked.com/2020/08/odx-int...king-platform/
    I'm curious what value, if any, Enova put on some these ancillary products. Back in April, Voce Capital wrote an angry open letter to On Deck leadership (https://www.businesswire.com/news/ho...rs-Vote-OnDeck), part of which argued they were getting too far away from their core competencies. Pursuits such as a bank charter, equipment financing, and ODX where distractions that were hurting the bottom line.

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