The major challenges in the workout, restructuring or maximizing value of companies based on Intellectual Property are:
- The lack of hard assets.
- Limited senior lender or debt source availability.
- Young and inexperienced entrepreneurs with little or no sales, marketing, finance or operating experience.
- A business model that may not/does not focus on generating Cash or get to Cash breakeven within a reasonable time frame.
- Unavailability of capital through the equity and debt markets.
- The Equity Sponsor(s) has made the decision that they will no longer fund the company.
- Gerbsman Partners represents stakeholders in such opportunities to maximize the value of a company’s major assets, which are often the Intellectual Property and its associated Intellectual Capital.