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Hilco Streambank does not believe in a one–size–fits–all approach to intangible asset monetization. Nor do we believe that a short time frame automatically requires an auction on the courthouse steps.
What we do believe is that there is a best (defined as highest net recovery, including carrying and transaction costs) disposition method for each portfolio of intangibles and each situation. We also believe that in distressed situations the stakeholders have little desire for risk and so we structure compensation structures that are significantly back loaded. We win only if you win.
Hilco Streambank's Methodology
1. Understand the Assets
Hilco Streambank utilizes the best available resources within its own network, as well as the resources within each client's firm, to identify the assets that are most marketable and to understand all the potential encumbrances.
2. Identify the Strategic Value
We work with a variety of management professionals, business operations experts, finance professionals, investors, and market researchers to understand the strategic value of the assets, and communicate them in their simplest form.
3. Identify the Target Market
In many cases it may be obvious which firms are most likely to acquire the intangibles. In other cases it is not so obvious. Creativity can expand the market in new ways and help identify the individuals who are to be targeted, which will in turn determine how to tailor the sales pitch.
4. Choose the Right Sale Structure
Financial investors love auctions! Auctions mean bargains and speed. Intangible asset buyers may be engineers looking for a solution; marketing professionals used to receiving competitive quotes; or others who may not respond well to an auction. Understanding your audience is crucial to developing the sale structure that maximizes value.
5. Market Aggressively
While Hilco Streambank believes in advertising asset sales, our best results come from direct marketing over the phone. No other method of marketing provides valuable feedback (e.g., “We're not a buyer, but you should call Joe at ABC Co.”) in real time, and the opportunity to get the right information to the right people quickly.
6. Close the Deal
We get paid when our clients get paid. We structure deals for the upside because we are confident in our ability to deliver results. We are closers. We have experience negotiating opposite very shrewd bargainers and can successfully create value from a position of little leverage. Hilco Streambank wants to win. But if you don't win, neither do we.
Hilco Streambank prides itself on incentive–compatible structures and does not view a company's misfortune as a feeding opportunity. Hilco Streambank will also consult with firms on creating incentive–compatible retention agreements for key employees involved in the intangible asset disposal process. After all, what better way is there to leverage expertise you already have?
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