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Posts Tagged ‘Robert Tillman’

Gerbsman Partners – Terminating/Restructuring Prohibitive Real Estate, Licenses, Payables & Contingent Liabilities by Steven Gerbsman and Robert Tillman

Posted in Uncategorized, tagged , , , on April 27, 2020| Leave a Comment »

Good morning

Based on our over 40 years of crisis management, restructuring and enterprise sale experience, we have never seen a financial crisis where uncertainty is greater than it is now.  Business leaders know that their enterprises will take a major economic hit, but they simply do not know how large or when it will be, where it will hurt most, or how long it will last. That uncertainty is causing businesses to “freeze” their decision-making.

Gerbsman Partners believes that “freezing in place” will worsen financial and human outcomes and may even be fatal for some businesses. We strongly recommend that companies review their contingent expenses, revenue prospects, liabilities, and creditor and senior lender issues and plan for the worst case.

Investors, board members, senior management and lenders must develop a crisis plans “NOW” for under-performing, under-capitalized and distressed companies. Plans will change as new information emerges, but implementing a crisis planning process immediately is vital, as it drives stakeholders to face hard realities and to take key actions early.

Gerbsman Partners and its Board of Intellectual Capital can help you develop action plans for maximizing and monetizing enterprise value, and then implement those plans.

We look forward to assisting.

Best

Steven R. Gerbsman – Principal, Gerbsman Partners

Robert R. Tillman – Member of Gerbsman Partners Board of Intellectual Capital

 

Terminating/Restructuring Prohibitive Real Estate, License, Payables & Contingent Liabilities

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 technology, life science, medical device, cyber security, solar and cleantech portfolio companies. 

These companies were not necessarily in crisis, but had cash (in some cases significant cash reserves) and/or investor groups that were about to provide additional funding. In order to stabilize their Go-Forward-Plan and maximize cash resources for future growth, there were specific needs to address Balance Sheet and Contingent Liability issues as soon as possible.

Some of these areas where Gerbsman Partners has assisted, these companies have been in the process of 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 and senior and sub-debt obligations.

To date, we have terminated or restructured $810 million of such obligations for private and public companies, and which has allowed them to return to financial viability.

 

Accounts/Trade Payable Obligations

Companies in a crisis, turnaround or restructuring situation typically have account 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 value based on the reality or practicality of the situation.

 

Software and Technology-related Licenses 

As per the above, software and technology-related licenses need to be restructured/terminated in order for additional capital to be invested in restructured companies. Gerbsman Partners has a significant, successful track record in these areas.

 

About Gerbsman Partners

Gerbsman Partners focuses on maximizing enterprise value for stakeholders and shareholders in underperforming, undercapitalized and undervalued companies and their intellectual properties. Since 2001, Gerbsman Partners has successfully maximized the values of 109 companies in a wide and diverse spectrum of industries. In the process, GP has successfully restructured/terminated over $810 million of real estate executor contracts and equipment lease/sub-debt obligations, and has assisted in over $2.3 billion of financings, restructurings and M&A transactions.

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

 

 

 

 

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Gerbsman Partners – Terminating/Restructuring Prohibitive Real Estate, Licenses, Payables & Contingent Liabilities by Steven Gerbsman and Robert Tillman

Posted in Uncategorized, tagged , , , on April 23, 2020| Leave a Comment »

Good morning

Based on our over 40 years of crisis management, restructuring and enterprise sale experience, we have never seen a financial crisis where uncertainty is greater than it is now.  Business leaders know that their enterprises will take a major economic hit, but they simply do not know how large or when it will be, where it will hurt most, or how long it will last. That uncertainty is causing businesses to “freeze” their decision-making.

Gerbsman Partners believes that “freezing in place” will worsen financial and human outcomes and may even be fatal for some businesses. We strongly recommend that companies review their contingent expenses, revenue prospects, liabilities, and creditor and senior lender issues and plan for the worst case.

Investors, board members, senior management and lenders must develop a crisis plans “NOW” for under-performing, under-capitalized and distressed companies. Plans will change as new information emerges, but implementing a crisis planning process immediately is vital, as it drives stakeholders to face hard realities and to take key actions early.

Gerbsman Partners and its Board of Intellectual Capital can help you develop action plans for maximizing and monetizing enterprise value, and then implement those plans.

We look forward to assisting.

Best

Steven R. Gerbsman – Principal, Gerbsman Partners

Robert R. Tillman – Member of Gerbsman Partners Board of Intellectual Capital

 

Terminating/Restructuring Prohibitive Real Estate, License, Payables & Contingent Liabilities

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 technology, life science, medical device, cyber security, solar and cleantech portfolio companies. 

These companies were not necessarily in crisis, but had cash (in some cases significant cash reserves) and/or investor groups that were about to provide additional funding. In order to stabilize their Go-Forward-Plan and maximize cash resources for future growth, there were specific needs to address Balance Sheet and Contingent Liability issues as soon as possible.

Some of these areas where Gerbsman Partners has assisted, these companies have been in the process of 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 and senior and sub-debt obligations.

To date, we have terminated or restructured $810 million of such obligations for private and public companies, and which has allowed them to return to financial viability.

 

Accounts/Trade Payable Obligations

Companies in a crisis, turnaround or restructuring situation typically have account 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 value based on the reality or practicality of the situation.

 

Software and Technology-related Licenses 

As per the above, software and technology-related licenses need to be restructured/terminated in order for additional capital to be invested in restructured companies. Gerbsman Partners has a significant, successful track record in these areas.

 

About Gerbsman Partners

Gerbsman Partners focuses on maximizing enterprise value for stakeholders and shareholders in underperforming, undercapitalized and undervalued companies and their intellectual properties. Since 2001, Gerbsman Partners has successfully maximized the values of 109 companies in a wide and diverse spectrum of industries. In the process, GP has successfully restructured/terminated over $810 million of real estate executor contracts and equipment lease/sub-debt obligations, and has assisted in over $2.3 billion of financings, restructurings and M&A transactions.

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

 

 

 

 

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Gerbsman Partners – “THE GREAT RESTRUCTURING OF 2020” Maximizing Value in Turbulent Times – April, 2020 by Steven R. Gerbsman and Robert Tillman

Posted in Uncategorized, tagged , , , , on March 31, 2020| Leave a Comment »

THE GREAT RESTRUCTURING OF 2020

 

What we know so far!

  • The Chinese Coronavirus has fundamentally changed the world and United States economies with unprecedented speed.
  • In some cases, those changes will be temporary. In many cases, those changes will be permanent.
  • The unintended and unforeseen consequences of the crisis will ripple through all aspects of the world and United States economies for many years.
  • The economic relationships between debtors (individuals, companies, governments) and creditors (vendors, lessors, lenders, employees) and owners (equity holders) are now fundamentally unbalanced, just as has occurred in all previous financial crises.
  • As in the Dotcom Crash, the 9/11 Crash and the 2008 Crash, those economic relationships will be rebalanced by renegotiation, sale, bankruptcy and liquidation, so that assets are redeployed, asset value is monetized and maximized and economic activity can continue. We know that there will still be airlines, travel companies, restaurants, oil companies, auto manufacturers, etc. We do not know which companies will survive or who will be their owners. For example, Boeing will likely still exist, but Boeing equity and debt holders may be hurt severely.
  • The world has survived far worse and has revived strongly. For example, World War I, followed by the Spanish Flu, followed by the huge economic growth of the 1920’s. Humans are wired to adapt to and to overcome hardship. We still have the land, resources, infrastructure, intellectual property, technology and talent that we had a month ago. Huge economic dislocation can also spur huge creativity, energy and innovation.
  • There will be major economic losers, but also major economic winners.
  • The United States is self-sufficient in food and energy and is the largest market and the greatest economic and political safe haven in the world. We are the best-positioned country in the world to emerge stronger than before.

What we do not know!

  • How bad the Chinese Coronavirus will get.
  • How long it will take for it to resolve. For example, the 1918 Spanish Flu came in waves and there is high expectation that the coronavirus will reappear this fall.
  • How bad the economic situation will get before it stabilizes, both in the short term and long term
  • The effect of historically unprecedented government economic stimulation and significant increase in the deficit.
  • The availability of cash to sustain under-performing companies and businesses.
  • How young CEO’s, investors, bankers will react to a situation that they have not seen or lived through before.

What happens next?

  • Everyone we know is sheltering in place and is shocked at the magnitude and speed of this world change. People need time to adjust to a radical new reality, and they have not yet had that time.
  • It is almost impossible to make any future predictions, however the most immediate business decisions will be critical given the extreme level of uncertainty.
  • We expect that the world health and economic situation will become clearer over the next few months. We expect to see a giant wave of economic restructuring that will last several years.
  • Early business crises will be driven by lack of cash. Based on our experience in several previous economic crashes, the speed with which business owners and managers face reality, preserve, protect and forecast cash and take effective action will determine which businesses survive and which die.

 

WHAT YOU CAN DO AS A BOARD MEMBER, INVESTOR, LENDER OR STAKEHOLDER … 

  • It is critical for companies, investors and lenders to face reality and act quickly. When things are going bad, waiting seldom improves the situation. In over 40 years of crisis management and restructuring experience we have never seen a board of directors act too quickly when faced with a crisis. We have all too frequently seen a board act slowly or not at all.
  • Implement cash flow, receivables and inventory reporting so that you are alerted to problems early.
  • Gerbsman Partners believes that companies, investors and lenders should to call for assistance early. The earlier professionals can get involved in the process, the better the potential outcome in maximizing enterprise value.  Again based on experience, boards, investors and lenders request assistance only after a company has little cash or is out of cash. Many more options exist to maximize enterprise value if a company has some running room.
  • Focus on the control, preservation and forecasting of cash on a weekly, monthly and quarterly basis.
  • Require “bottoms up” forecasting for all aspects of cash, revenue and expense. Have the CEO and CFO defend all numbers.
  • Hold the CEO responsible and accountable for performance. Re-forecast your business plan based on the reality of “what is” today with large margins for uncertainty.
  • Communicate frequently with all parties at interest. Check that the CEO is providing leadership, motivation and morale to the management team and employees.
  • Review all companies in your portfolio. Identify and define action plans to fix weaknesses now.

 

! CALL GERBSMAN PARTNERS NOW AND  GET AHEAD OF THE CURVE.

Crisis Management and Restructuring to Maximize Enterprise Value is our Business!

 

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 103 technology, medical device, life science, digital marketing, information & cyber security and solar companies and their Intellectual Property and has restructured/terminated over $810 million of real estate executory contracts and equipment lease/sub-debt obligations. Since inception, Gerbsman Partners has been involved in over $2.3 billion of financings, restructurings and M&A transactions.

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

 

Steven R. Gerbsman – Principal steve@gerbsmanpartners.com

 

Robert R. Tillman – Member of Gerbsman Partners Board of Intellectual Capital

 

 

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Gerbsman Partners – The Black Swan Pushes Events to the Tipping Point – Initially Published May 24, 2007

Posted in Uncategorized, tagged , , , , on August 3, 2019| Leave a Comment »

 
August, 2019
 
This article was published by Steven R. Gerbsman and Robert Tillman in May, 2007.
 
Please read, review any similarities to today and “be prepared”.
“The more things change, the more they remain the same”
 

San Francisco, May, 2007The Black Swan Pushes Events to the Tipping Point-Maximizing Enterprise Value in the  upcoming Crisis

We are currently in one of the best economic times in our country’s history. The stock market is at all time highs, unemployment is at all-time lows, interest rates are low, money is plentiful and deal valuations are high and getting higher. There are, of course, many worrisome trends: terrorism, excessive government spending, trade deficits, potential high oil prices, immigration and over the longer term, such issues as an aging population and (possibly) global warming. Although problems and worries always exist, in historical terms, times are very good indeed.The big questions for us as specialists in maximizing enterprise value are:Will it end?

Yes. Of course. Even fundamentally healthy economies experience frequent and often violent corrections. The current world economy has evolved in many ways over the past decade. All large businesses are international. The primary economies of the world are very tightly linked together. Money is far more liquid and moves around the world with far less “friction” than it did in the past. The pace of technical change continues to increase. Nevertheless, we do not believe that the laws of history, and especially, the laws of human nature, have been repealed.As always, “The more things change, the more that they remain the same.”When will it end?

Unfortunately, no one knows the answer to this question. In historical terms, the current economic expansion has continued for a very long time and has survived numerous shocks, including war, a doubling of energy prices, natural disasters and localized economic downturns , such as the bursting of the sub-prime mortgage bubble. It appears to be “ripe” for a downturn. On the other hand, inherently unstable situations often persist for far longer than anyone could believe possible. During the 2000 Internet bubble, it seemed to us for quite some that the old rules of business no longer applied and that 25 year-old CEOs knew something us old guys did not know. When the crash occurred, we were relieved to find out that we were not so obsolete after all.

We did, however, underestimate the staying power of technically insolvent companies with broken or non-existent business models. Many of these companies had significant cash on the balance sheet (offset, of course, by significant liabilities) and investors who continued to infuse more cash far beyond the point of reason. Today, there exist immense pools of uncommitted cash, much of it in the hands of entities, such as private equity funds and hedge funds that are subject to minim al regulatory scrutiny and whose operations are obscured from the public view. In addition, the weakness of the dollar against both the Euro and the Pound Sterling makes U.S. assets a relative bargain. These factors tend to mitigate against an economic downturn. For how much longer they will continue to do so we do not know (and if we did know, we would certainly would not tell).

How will it end?

Fast, hard and unexpectedly. Two books shed a great deal of light on the process:

The first book, The Tipping Point by Malcolm Gladwell describes how human behavior causes events to cascade rapidly once a certain critical mass (the “Tipping Point”) has been achieved. Examples in the business world include periodic economic “panics” and the spread of certain technologies and products, such as personal computers, iPods, cell phones, etc. It is very difficult to predict in advance when the “tipping point” in any situation will be reached, but history has shown that, once it has been reached, events proceed very quickly.

The second book, The Black Swan: The Impact of the Highly Improbable by Nassim Nicholas Taleb describes how highly improbable, and hence unpredictable, events periodically create massive change. The title of the book derives from the observation that the existence of even a single black swan disproves the assertion that all swans are white. Historical examples include the Fall of France at the beginning of World War II, the rise of the Internet and 9/11.

There are many obvious candidates for a “black swan” event that pushes the world economy over “the tipping point” into a downturn – a war with Iran, a nuclear terrorist attack or a worldwide bird flu or small pox epidemic, but generally, it is what you do not see that gets you. We are fundamentally optimists about the long-term prospects of the world economy. In many highly measurable ways, the wor ld really is improving, driven by technological innovation, a lowering of barriers to trade and increasing economic integration. Nevertheless, we are old enough to have lived through many “bumps” along the road and know that such discontinuities will always occur. We believe that we will see a significant economic event sometime over the next 12-18 months, either localized to a particular sector or geographic region or globally.

Our Advice?

Before such an event occurs:

As a board member, investor or stakeholder:

1.    Implement tight cash flow, receivables and inventory reporting so that you are alerted to problems early.

2.    Focus on the control, preservation and forecasting of CASH on a weekly, monthly and quarterly basis.

3.    Require “bottoms up” forecasting for all aspects of revenue and expense. Have the CEO and CFO defend ALL numbers.

4.    Hold the CEO responsible and accountable for Performance. If you are off the business plan/forecast, re-forecast based on the reality of “what is” today.

5.    Communicate frequently with all parties at interest. Check that the CEO is providing leadership, motivation and morale to the management team and employees.

6.    Review all companies in your portfolio. Identify and define action plans to fix weaknesses now.

7.    Utilize professional resources to assist in maximizing enterprise value, when appropriate.

When such an event occurs:

1.    Face up to reality and act quickly. When things are going bad, waiting seldom improves them. We have never seen a board of directors act too quickly when faced with a crisis. We have all too frequently seen a board act slowly or not at all.

2.    Call for assistance early. The earlier professionals can get involv ed in the process, the better the potential outcome in maximizing enterprise value. Many times boards request assistance only after a company has run out of cash. Many more options exist to maximize enterprise value if a company has some running room.

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 107 technology, medical device, life science, digital marketing/social commerce, cyber security and solar companies and their Intellectual Property and has restructured/terminated over $810 million of real estate executory contracts and equipment lease/sub-debt obligations. Since inception, Gerbsman Partners has been involved in over $ 2.3 billion of financings, restructurings and M&A transactions.Gerbsman Partners has offices and strategic alliances in San Francisco, New York, Boston, Orange County, VA/DC, Europe and Israel.

 

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The Black Swan Pushes Events to the Tipping Point-Maximizing Enterprise Value in the upcoming Crisis – by Steven R. Gerbsman – Gerbsman Partners

Posted in Uncategorized, tagged , , , , on April 30, 2017| Leave a Comment »

 

The Black Swan Pushes Events to the Tipping Point-

Maximizing Enterprise Value in the upcoming Crisis
This article was published by Steven R. Gerbsman and Robert Tillman in May, 2007

and again in August, 2015.    It appears it may be “that time again”.

Please read, enjoy and “be prepared”.

Best regards,
Steve Gerbsman – Principal Gerbsman Partners

We are currently in one of the best economic times in our country’s history. The stock market is at all time highs, unemployment is at all-time lows, interest rates are low, money is plentiful and deal valuations are high and getting higher. There are, of course, many worrisome trends: terrorism, excessive government spending, trade deficits, high oil prices, immigration and over the longer term, such issues as an aging population and (possibly) global warming. Although problems and worries always exist, in historical terms, times are very good indeed.

The big questions for us as specialists in maximizing enterprise value are:

Will it end?

Yes. Of course. Even fundamentally healthy economies experience frequent and often violent corrections. The current world economy has evolved in many ways over the past decade. All large businesses are international. The primary economies of the world are very tightly linked together. Money is far more liquid and moves around the world with far less “friction” than it did in the past. The pace of technical change continues to increase. Nevertheless, we do not believe that the laws of history, and especially, the laws of human nature, have been repealed.

As always, “The more things change, the more that they remain the same.”

When will it end?

Unfortunately, no one knows the answer to this question. In historical terms, the current economic expansion has continued for a very long time and has survived numerous shocks, including war, a doubling of energy prices, natural disasters and localized economic downturns, such as the bursting of the sub-prime mortgage bubble. It appears to be “ripe” for a downturn. On the other hand, inherently unstable situations often persist for far longer than anyone could believe possible. During the 2000 Internet bubble, it seemed to us for quite some that the old rules of business no longer applied and that 25 year-old CEOs knew something us old guys did not know. When the crash occurred, we were relieved to find out that we were not so obsolete after all.

We did, however, underestimate the staying power of technically insolvent companies with broken or non-existent business models. Many of these companies had significant cash on the balance sheet (offset, of course, by significant liabilities) and investors who continued to infuse more cash far beyond the point of reason. Today, there exist immense pools of uncommitted cash, much of it in the hands of entities, such as private equity funds and hedge funds that are subject to minim al regulatory scrutiny and whose operations are obscured from the public view. In addition, the weakness of the dollar against both the Euro and the Pound Sterling makes U.S. assets a relative bargain. These factors tend to mitigate against an economic downturn. For how much longer they will continue to do so we do not know (and if we did know, we would certainly would not tell).

How will it end?

Fast, hard and unexpectedly. Two recent books shed a great deal of light on the process:

The first book, The Tipping Point by Malcolm Gladwell describes how human behavior causes events to cascade rapidly once a certain critical mass (the “Tipping Point”) has been achieved. Examples in the business world include periodic economic ?panics? and the spread of certain technologies and products, such as personal computers, iPods, cell phones, etc. It is very difficult to predict in advance when the ?tipping point? in any situation will be reached, but history has shown that, once it has been reached, events proceed very quickly.

The second book, The Black Swan: The Impact of the Highly Improbable by Nassim Nicholas Taleb describes how highly improbable, and hence unpredictable, events periodically create massive change. The title of the book derives from the observation that the existence of even a single black swan disproves the assertion that all swans are white. Historical examples include the Fall of France at the beginning of World War II, the rise of the Internet and 9/11.

There are many obvious candidates for a “black swan” event that pushes the world economy over “the tipping point” into a downturn – a war with Iran, a nuclear terrorist attack or a worldwide bird flu or small pox epidemic, but generally, it is what you do not see that gets you. We are fundamentally optimists about the long-term prospects of the world economy. In many highly measurable ways, the wor ld really is improving, driven by technological innovation, a lowering of barriers to trade and increasing economic integration. Nevertheless, we are old enough to have lived through many “bumps” along the road and know that such discontinuities will always occur. We believe that we will see a significant economic event sometime over the next 12-18 months, either localized to a particular sector or geographic region or globally.

Our Advice?

Before such an event occurs:

As a board member, investor or stakeholder:

  1. Implement tight cash flow, receivables and inventory reporting so that you are alerted to problems early.
  2. Focus on the control, preservation and forecasting of CASH on a weekly, monthly and quarterly basis.
  3. Require “bottoms up” forecasting for all aspects of revenue and expense. Have the CEO and CFO defend ALL numbers.
  4. Hold the CEO responsible and accountable for Performance. If you are off the business plan/forecast, re-forecast based on the reality of “what is” today.
  5. Communicate frequently with all parties at interest. Check that the CEO is providing leadership, motivation and morale to the management team and employees.
  6. Review all companies in your portfolio. Identify and define action plans to fix weaknesses now.
  7. Utilize professional resources to assist in maximizing enterprise value, when appropriate.

When such an event occurs:

  1. Face up to reality and act quickly. When things are going bad, waiting seldom improves them. We have never seen a board of directors act too quickly when faced with a crisis. We have all too frequently seen a board act slowly or not at all.
  2. Call for assistance early. The earlier professionals can get involv ed in the process, the better the potential outcome in maximizing enterprise value. Many times boards request assistance only after a company has run out of cash. Many more options exist to maximize enterprise value if a company has some running room.

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 98 technology, medical device, life science, digital marketing/social commerce, fuel cell, consumer and solar companies and their Intellectual Property and has restructured/terminated over $810 million of real estate executory contracts and equipment lease/sub-debt obligations. Since inception, Gerbsman Partners has been involved in over $ 2.3 billion of financings, restructurings and M&A transactions.

Gerbsman Partners has offices and strategic alliances in San Francisco, New York, Boston, Orange County, VA/DC, Europe and Israel.
GERBSMAN PARTNERS
Email: steve@gerbsmanpartners.com
Web: www.gerbsmanpartners.com
BLOG of Intellectual Capital: blog.gerbsmanpartners.com

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