In September 2008, Andrew Ferris, an analyst at Capital LLC Papillion, asked, Heartland Payment Systems, Inc. to evaluate ‘s shares for possible inclusion in Papillion Service Growth equity funds. Heartland, a provider of payment services, bank card, had aggressive new merchant accounts with a growing direct sales acquired after the IPO (IPO) in 2005. He focused his expansion plans for restaurants, brick and mortar retailers, convenience and liquor stores, auto … Read more »

In September 2008, Andrew Ferris, an analyst at Capital LLC Papillion, asked, Heartland Payment Systems, Inc. to evaluate ‘s shares for possible inclusion in Papillion Service Growth equity funds. Heartland, a provider of payment services, bank card, had aggressive new merchant accounts with a growing direct sales acquired after the IPO (IPO) in 2005. He focused his expansion plans for restaurants, brick and mortar retailers, convenience and liquor stores, automobile sales, repair shops and gas stations, professional service and accommodation facilities. In January 2008, Heartland management revised its forecast downward EPS forecast for 2008. The company compensates its sales exclusively although commissions, based on the performance of their merchant accounts. Avondale Partners pointed out that Heartland paid about 92 percent of the estimated gross profit of the merchants accounts in the little free cash flow in the first year of a merchant contract resulting generated. Avondale questioned the company’s capitalization and amortization of signing bonuses and monthly residuals policy, rather than as an expense immediately. In the spring of 2008 gave Morgan Keegan & Co., an investment firm, the target price for Heartland of $ 26 -. $ 29 per share
This is a Thunderbird Case Study.
«Hide

from
Graeme Rankine
Source: Thunderbird School of Global Management
12 pages.
Release date: 25 September 2009. Prod #: TB0025-PDF-ENG
Heartland Payment Systmems, Inc. HBR case solution

[related_post themes="flat"]