2. 2
Distressed Asset Spectrum
Bankrupt
Winding
Down
Restructuring
Biz Unit
Close
Non-Dilutive
Cash
Injection
• IP owner wants to sell fast
• More deal flexibility
Seller
Characteristics
• Supporting information varies
• IP “Care & Feeding” riskIP
Characteristics
Slide 2
Increasing Support Information
3. 3
What to Expect?
• Bankruptcy – multiple beneficiaries
• Business unit sale – strategic partner fit
Multiparty interests
• No time for diligence = IP with no value
Speed kills value
• No integration – no HR issues
• Limited post close cash injections
Some problems go away (or at least
different)
Slide 3
4. 4
More Efficient Transactions
• What is the value
Agreement on the “why” of the purchase
• Build internal consensus
• Aid in external negotiations
Valuation modeling
• “Better, stronger, faster”
Leverage in-house specialists
• Cap your diligence costs
Fixed priced diligence
Slide 4