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Posts Tagged ‘turnaround’

Successful “Date Certain M&A” of Medical Device company, its Assets and Intellectual Property

Posted in Board Of Intellectual Capital, tagged , , , , on July 14, 2010| Leave a Comment »

Steven R. Gerbsman, Principal of Gerbsman Partners, Kenneth Hardesty and Dennis Sholl, members of Gerbsman Partners Board of Intellectual Capital, announced today their success in maximizing stakeholder value for a venture capital backed, medical device company company focused on a unique stent delivery platform that has applications in treating coronary, neuro and peripheral artery disease.

Gerbsman Partners provided Crisis Management and Investment Banking leadership, facilitated the sale of the business unit’s assets and its associated Intellectual Property. Due to market conditions, the board of directors made the strategic decision to maximize the value of the business unit and Intellectual Property.

Gerbsman Partners provided leadership to the company with:

  • Crisis Management and medical device domain expertise in developing the strategic action plans for maximizing value of the business unit, Intellectual Property and assets;
  • Proven domain expertise in maximizing the value of the business unit and Intellectual Property through a Gerbsman Partners targeted and proprietary “Date Certain M&A Process”;
  • The ability to “Manage the Process” among potential Acquirers, Lawyers, Creditors Management and Advisors;
  • The proven ability to “Drive” toward successful closure for all parties at interest.

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 61 Technology, Life Science and Medical Device companies and their Intellectual Property and has restructured/terminated over $790 million of real estate executory contracts and equipment lease/sub-debt obligations. Since inception in 1980, 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 Boston, New York, Washington, DC, Alexandria, VA, San Francisco, Europe and Israel.

For additional information please visit www.gerbsmanpartners.com or
Gerbsman Partners blog.

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WHAT’S IN STORE, INFLATION OR DEFAULT?

Posted in Board Of Intellectual Capital, tagged , , , , , , , , , , on September 7, 2009| Leave a Comment »

Here is a story from the Powerline Blog.

“I’ve assumed that the profligate spending and borrowing planned by the Democrats in Congress and the White House will run up a debt that we and our children just can’t pay, so, in the time-honored tradition of banana republics, the Obama administration or its successors will inflate our currency and repay its creditors (China, mostly) in devalued dollars. Thus, I’ve been buying gold. I’ve assumed that an actual default by the United States government is unthinkable.

Jeffrey Rogers Hummel, however, disagrees. He writes: Why Default on U.S. Treasuries Is Likely. HIs thesis is that times have changed, and it isn’t so easy to inflate our way out of debt:

Many predict that…the government will inflate its way out of this future bind, using Federal Reserve monetary expansion to fill the shortfall between outlays and receipts. But I believe, in contrast, that it is far more likely that the United States will be driven to an outright default on Treasury securities, openly reneging on the interest due on its formal debt and probably repudiating part of the principal.

Hummel explains that most money is now created privately by banks and other institutions, not the government, so that “[o]nly in poor countries, such as Zimbabwe, with their primitive financial sectors, does inflation remain lucrative for governments.”

A steep tax increase won’t really work for the Obama administration either. ”

To read the full article, click here.

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After slow start, U.S. deal making set to rise

Posted in Board Of Intellectual Capital, tagged , , , , , , , , on September 3, 2009| Leave a Comment »

Here is a good analysis on the business outlook from Reuters.

“BOSTON/NEW YORK (Reuters) – The next few months could see more mergers and acquisitions in the U.S. manufacturing sector as memories of recent market highs fade and some smaller companies find they need financial backing.

Executives at top manufacturers, including United Technologies Corp (UTX.N), had hoped the recession would provide ample opportunities to scoop up bargains this year, but were stymied when potential targets balked at selling when stock prices were testing 13-year lows.

But all of that may be changing, particularly if small manufacturers find themselves scrambling for cash when demand recovers and they need to restart production lines and bring back staff.

“As volume comes back for many suppliers, many companies, this may actually be the stress point for them relative to their financing needs,” Patrick Campbell, chief financial officer of 3M Co (MMM.N), told investors on Wednesday.

“This could actually be the point where we start to see some companies that maybe become a little more distressed … We’ve got our eyes wide open on that.”

Industrial conglomerate Danaher Corp (DHR.N) said on Wednesday it plans to buy two makers of scientific instruments for a total of $1.1 billion in cash, including a unit of Canada’s MDS Inc (MDS.TO) and Life Technologies Corp’s (LIFE.O) stake in a joint venture with MDS.

FIXATED ON THE PAST

So far this year, U.S. companies have announced $516.3 billion in deals, according to Thomson Reuters data. That is down 49.1 percent from the same period in 2008.

As potential buyers see it, the biggest roadblock to getting deals done this year has been that sellers are fixated on the past value of their shares. The Standard & Poor’s capital goods index .GSPIC is down about 34 percent over the past year.

“A lot of players are still hung up with their 52-week high,” United Tech Chief Executive Louis Chenevert told an investor meeting this week.”

Read the full article here.

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Onerous Post-Bubble Deal Term Reappears

Posted in Board Of Intellectual Capital, Economy, Gerbsman Partners, Intellectual capital, Investments, Market research, Venture Capital, tagged , , , , , , , , , , , , on March 3, 2009| Leave a Comment »

Here is a good article by Scott Austin at WSJ Online on a subject we brought up last week.

“Start-up companies appear to be giving into investor demands of a harsher funding deal term that gained notoriety after the tech bubble burst in the early part of the decade.

According to two separate quarterly reports issued last week from law firms Fenwick & West and Cooley Godward Kronish, venture capital firms are more frequently receiving multiple liquidation preferences that protect them from losing out on investments.

Venture capital firms almost always receive preferred stock when they invest in companies, giving them certain rights over common stock holders, usually the founders and executives. One of these standard rights is a liquidation preference, which gives preferred stock holders the right to get their money back from a company before other common stock holders in an unfavorable sale or liquidation.

But with more companies in trouble, investors are inserting multiple liquidation preferences into term sheets, meaning they could get two times or more the amount of capital they invested. That can create nightmarish capital structures for companies but give them more incentive for them to become successful.”

Read the full article here.

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