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“Maximizing Enterprise Value through Balance Sheet Restructuring & Date Certain M&A Process”

Posted in Board Of Intellectual Capital, boic, Economy, Gerbsman Partners, tagged , , , on May 14, 2009| Leave a Comment »

Gerbsman Partners has been involved with numerous national and international equity sponsors, senior/junior lenders, investment banks and equipment lessors in the restructuring or termination of various Balance Sheet issues for their portfolio companies. These companies were not necessarily in Crisis, had CASH (in some cases significant CASH) and/or investor groups that were about to provide additional funding. In order stabilize their go forward plan and maximize CASH resources for future growth, there was a specific need to address the Balance Sheet and Contingent Liability issues as soon as possible.

Some of the areas in which Gerbsman Partners has assisted these companies have been in the termination, restructuring and/or reduction of:

  • Prohibitive executory real estate leases, computer and hardware related leases and senior sub-debt obligations – Gerbsman Partners was the “Innovator” in creating strategies to terminate or restructure prohibitive real estate leases, computer and hardware related leases and senior and sub-debt obligations. To date, Gerbsman Partners has terminated or restructured over $770 million of such obligations. These 77 deals were a mixture of both public and private companies, and allowed the restructured company to return to a path of financial viability.
  • Accounts Trade payable obligations – Companies in a crisis, turnaround or restructuring situation typically have accounts and trade payable obligations that become prohibitive for the viability of the company on a go forward basis. Gerbsman Partners has successfully negotiated mutually beneficial restructurings that allowed all parties to maximize enterprise value based on the reality and practicality of the situation.

Date Certain M&A Process

Gerbsman Partners developed its proprietary “Date Certain M&A Process” in 2002. Since that time, the process has evolved into a 4-6 time frame vehicle for maximizing enterprise value for venture backed Intellectual Property based companies. A description of this proven process can be reviewed on the Gerbsman Partners website.

About Gerbsman Partners

Gerbsman Partners focuses on maximizing enterprise value for stakeholders and shareholders in under-performing, under-capitalized and under-valued companies and their Intellectual Property. Since 2001, Gerbsman Partners has been involved in maximizing value for 52 Technology, Life Science and Medical Device companies and their Intellectual Property and has restructured/terminated over $770 million of real estate executory contracts and equipment lease/sub-debt obligations. Since inception in 1980, Gerbsman Partners has been involved in over $2.2 billion of financings, restructurings and M&A transactions.

Gerbsman Partners has offices and strategic alliances in Boston, New York, Washington, DC, Alexandria, VA, San Francisco, Europe and Israel.

For additional information please visit www.gerbsmanpartners.com

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Restructuring provides a new start

Posted in Board Of Intellectual Capital, tagged , , , , , , , , on May 13, 2009| Leave a Comment »

Here is a interesting article posted at WSJ Venture Dispatch.

“Wallenstein, one of the first four employees and former vice president of sales at Recordant, a provider of sales analytics technology, said he purchased the company’s patents, software and trademarks at a bankruptcy auction last month for $1,000.”

The article continues…

“Recordant took in $12 million in venture capital before filing for bankruptcy in February. It raised $3 million in Series A financing from Kodiak Venture Partners in 2005 and 2006, followed by a $9 million Series B round led by FirstMark Capital, which was then called Pequot Ventures. Aurora Funds also participated in the later round.

Recordant sold a device, about the size of a small iPod, that could be worn by sales and customer service representatives to record their interactions with customers. The company also sold software to perform analytics to help its customers identify key words associated with a sale.

Founded in 2003, with its first products on the market in 2006, Recordant focused on retail, automotive, banking and hospitality industries. It fell victim to longer-than-expected sales cycles that became too much to bear when the economic crisis hit, and filed for Chapter 7 bankruptcy in February.”

With no plans to raise money the company stands a good chance to run on a bootstrap.

“After extensive use of Recordant’s products by the U.S. National Guard, the U.S. Army had a contract to put the technology to use in their recruiting centers, but that fell through when the banking crisis hit, May said. It was also set to follow up a pilot program with an undisclosed insurance company to put the technology in 10,000 of its offices, he said. That company later declared a $1 billion loss, putting the project on hold indefinitely, he said.

May still remains confident about the potential of the business. “Somebody is going to do this someday, because there is a need for it,” he said. “We saw and heard things that were absolutely amazing in good ways and bad.”

Read the full article here.

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Analyst forecasts 900% Android phone sales growth

Posted in Board Of Intellectual Capital, boic, Investments, Market research, Venture Capital, Wireless, tagged , , , , , , , , , , , , , , on May 12, 2009| 1 Comment »

If you look for growth opportunities, look no further say Strategy Analytics. With a 900% growth forecast, and Google support in the background – the mobile ecosystem will see some intriguing innovations shortly. With iPhone and AppStore showing the way, Android from Google may provide a business opoortunity for global opportunities for mobile developers.

Please also see our previous articles: “Android vs. iPhone: Why Openness may Not Be Best” and “Android to do what no one else managed!”

Hardware Register has more on this story:

“Android-based smartphones will ship in massive numbers this year – at least compared to last year’s total, market watcher Strategy Analytics has forecast.

In its latest report, the firm predicted that Android smartphone shipments will increase a whopping 900 per cent during 2009 over last year. Shipments of Apple’s iPhone will grow 79 per cent this year, SA said.

The Google-developed OS hasn’t featured on phones for as long as Apple’s handset has been on the market. Nonetheless, healthy support from “operators, vendors and developers” will continue to help increase Android’s adoption, SA said.

“A relatively low-cost licensing model, its semi-open source structure and Google’s support for cloud services have encouraged companies… to support the Android operating system,” said Neil Mawston, Director at Strategy Analytics.

The number of Android-based devices is certainly set to expand this year. Vodafone recently launched the world’s second Android phone in Blighty – the Magic. It’s also widely rumoured that Samsung will launch an own-brand Android phones this year.”

Read the article here.

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Crisis provide opportunity for “Angels”

Posted in Board Of Intellectual Capital, Investments, Venture Capital, tagged , , , , , , , on May 11, 2009| Leave a Comment »

Here is a excerpt from San fernando Business Journal, that provides som good news.

“We’re seeing at least a 50 percent increase in deals choosing us over VCs for various reasons,” says John Dilts, founder and president of Maverick Angels in Westlake Village. The group has 25 members who screen and invest in companies monthly.

The economy has forced many VCs to slow their investment pace and focus on existing companies that are not able to exit their portfolios because of the shuttered IPO window and weak acquisitions market, said Mark Heesen, president of the National Venture Capital Association, in the MoneyTree Report.

While many angels remain cautious, the downturn has resulted in higher quality entrepreneurs looking for early stage capital, says Dilts. Some have raised previous rounds of capital and developed their companies to the point of generating revenue.

Company valuations have also dropped, which is an appealing point of entry for angels. “As angels we’re seeing higher quality deals and lower valuations,” says Dilts. “We fill a unique void in the emerging growth finance universe. We provide speculative capital.”

Read the full article here.

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The real problem with the stress tests and the bailout programs

Posted in Board Of Intellectual Capital, Business models, Distressed IP, Economy, Investments, Market research, Strategy, tagged , , , , , , , , , , , , , , on May 8, 2009| Leave a Comment »

We wrote about this topic yesterday, the bailout was just a bandaid – the real issue is the fundamentals. The recent stress tests uncovered some uncomfortable truths in regards of cash, GMAC among others might need bailout or face bankruptcy!

The ever so humble (not) Paul Krugman today wrote a good Op-Ed in NY Times. Here are some selected quotes explaining the situation very clearly.

“I won’t weigh in on the debate over the quality of the stress tests themselves, except to repeat what many observers have noted: the regulators didn’t have the resources to make a really careful assessment of the banks’ assets, and in any case they allowed the banks to bargain over what the results would say. A rigorous audit it wasn’t.

But focusing on the process can distract from the larger picture. What we’re really seeing here is a decision on the part of President Obama and his officials to muddle through the financial crisis, hoping that the banks can earn their way back to health.”

He continues;

“After all, right now the banks are lending at high interest rates, while paying virtually no interest on their (government-insured) deposits. Given enough time, the banks could be flush again.

But it’s important to see the strategy for what it is and to understand the risks.

Remember, it was the markets, not the government, that in effect declared the banks undercapitalized. And while market indicators of distrust in banks, like the interest rates on bank bonds and the prices of bank credit-default swaps, have fallen somewhat in recent weeks, they’re still at levels that would have been considered inconceivable before the crisis.

As a result, the odds are that the financial system won’t function normally until the crucial players get much stronger financially than they are now. Yet the Obama administration has decided not to do anything dramatic to recapitalize the banks.

Can the economy recover even with weak banks? Maybe. Banks won’t be expanding credit any time soon, but government-backed lenders have stepped in to fill the gap. The Federal Reserve has expanded its credit by $1.2 trillion over the past year; Fannie Mae and Freddie Mac have become the principal sources of mortgage finance. So maybe we can let the economy fix the banks instead of the other way around.”

Read the full article here.

Others covering this article can be found here: Economists View, Brooks and Krugman, NewsTrust, One Penny Street, Relevant Science.

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