In September 1999, Gerbsman Partners was one of the first companies commenting on the coming Internet/Technology bust. We identified the following warning signs & symptoms:
- Young and inexperienced entrepreneurs/management
- Intellectual Property vs. hard assets and lack of recurring revenue
- Typically no senior lender or debt source
- Unrealistic business models without enough focus on generating cash
- Uncertainty about customer needs/behavior and unforeseen changes in technologies
- Constant delays of deliverables and failing technologies
- Less market growth then expected and too many players in the same space
- Difficulties to increase the scale, adopt product/services offerings to demand, operate cross platforms etc
- Unavailability of capital through the equity and debt markets
During the Internet/Technology meltdown, Gerbsman Partners maximized enterprise value for under-performing, under-valued and under-capitalized VC technology/Internet companies and their Intellectual Property through:
- The stabilization, wind down/orderly shut down of 17 companies and the sale, M&A or joint venture of the company's Intellectual Property;
- The termination/restructuring of over $ 425 million of prohibitive real estate, equipment lease and/or sub-debt obligations;
- Crisis Management services that minimized potential stakeholder exposure and insuring stakeholders/Board of Directors meet their fiduciary obligations;
In January 2003, Gerbsman Partners again identified similar characteristics in the
Wireless/Technology space. As such, Gerbsman Partners began a substantial marketing
program to develop " Domain Expertise " in the Wireless/Technology area.
Domain Expertise Wireless/Technology
Our marketing, research and focus includes organizing meetings and establishing relationships with leading Manufacturers, Service Providers, Developers and Equity Investors. Among others, we participated in the CeBit, CTIA, and Mobile GDC conferences, and have organized numerous visits to Europe and Israel. As a result, Gerbsman Partners has built significant Domain Expertise in this area. Patric Carlsson, a member of Gerbsman Partners' Board of Intellectual Capital, has written three "White Papers" that summarize some our findings, conclusions and opportunities.
Besides describing the current status of the Premium SMS, Entertainment, and WiFi markets, the White Papers also outline a number of challenges in the wireless market. One example, is the overheated WiFi market, where the projected revenue per hotspot makes most current business models unsustainable.
In order to maximize enterprise/stakeholder value in Wireless/Technology, Gerbsman Partners has entered into strategic alliances with Wireless/Technology, Restructuring and Merchant Banking firms in the United Kingdom, France and Israel. As such, Gerbsman Partners expanded business model include the following objectives:
- To maximize enterprise/stakeholder value of under-performing, under-valued and under-capitalized Wireless/Technology companies and their Intellectual Property;
- To provide Balance Sheet restructuring/termination capability of prohibitive real estate, equipment lease and sub-debt obligations;
- To serve as a catalyst in bridging the gap between the European and Israeli wireless and complimentary technologies, and the more slowly developing US marketplace;
- To assist US investors and their portfolio companies in acquisition, licensing and distribution of European and Israeli technologies;
- To assist US investors and their portfolio companies in establishing distribution channels for their products and services in Europe, and;
- To act as a strategic partner for market, product, or service assessments.
About Gerbsman Partners
As a result of Gerbsman Partners' 23 years of maximizing enterprise value and specific domain expertise in technology related intellectual property, we have developed an established and proven "architecture for maximizing enterprise value", as well as a proven and responsive distribution channel. Our channel reaches International and US institutional investors, venture capital funds, investment bankers, executives, lawyers and accountants, as well as leveraging Gerbsman Partners' direct relationships with major wireless and technology companies.
Gerbsman Partners, supported by its International Board of Intellectual Capital, has been involved in over $1 billion of transactions worldwide and has assisted in M&A, balance sheet and equity restructuring, orderly shut down, licensing, partnership and capital formation for numerous companies and their Intellectual Property.
Our international business and technical team, which includes European and Israeli based sales and technical personnel, looks forward to earning the right to be a resource to you.
