Originally aired May 19, 2011. The most important message for lenders to consider is that IP, although an intangible asset, can be regarded much like tangible asset classes. IP carries significant value in both healthy and distressed situations. There is a growing, sophisticated marketplace for IP assets, where various types of buyers participate. Similar to other asset classes, IP can generate substantial recovery values for owners, which should provide lenders comfort when including IP as part of their collateral bases.
Attendees will learn:
· What is IP?
· Different types of IP
· IP in the world of ABL
o Definitions of value
o Valuation methodologies
o Lendable value
o Boot collateral vs. Collateral base
o Not all IP is appropriate for collateral
· How the market treated IP after the recession
· Growing sophisticated marketplace for IP
o Why is IP valuable?
o Types of buyers
§ Value propositions
§ Different situations
o Investment strategies
o Transaction examples
· Risks
o Acquire proper knowledge of the specific IP asset, industry, and competitors before investing.
o Determine what assets have any value, what can be included in a collateral base, and the value of that collateral in a liquidation scenario.
o Develop overview of how the collateral will liquidate, various alternative exit strategies, and a list of potential/likely buyers.
Presented by:
Jason Frank, Managing Director, Hilco Enterprise Valuation Services
Mitchell Berk, CEO, Hilco Brands and Hilco Consumer Capital