In response to client inquiry and current conditions, Ocean Tomo has initiated a new Corporate Recovery & Restructuring Advisory (CRRA) Services division, drawing professionals from each of its business units. Ocean Tomo’s CRRA division uniquely combines industry leading IP market expertise with decades of traditional financial restructuring experience to serve corporations, financial institutions, and investment managers impacted by credit and economic crises. Additionally, the firm works closely with a limited number of traditional financial restructuring firms to present joint solutions.
CRRA’s unique insight into a firm’s largest asset base and intangibles, along with its proven proprietary solutions, helps companies to:
Specific services provided by Ocean Tomo’s CRRA division include IP Portfolio Optimization, IP-Backed Debt Enhancement, IP Litigation “Right-Sizing” & Enforcement Funding, FASB 141 and 142 Purchase Price Allocation & Impairment Valuation, Financial Services Litigation Support & Expert Testimony, and Operational & Financial Advisory or Interim Management.
IP Portfolio Optimization
CRRA professionals work to trim existing patent portfolios, reducing significant maintenance expenses. Clients have targeted savings exceeding $10 million annually from such reviews. CRRA analysis is based on the Ocean Tomo Ratings™ system, assessing quality, relevance and competitive rankings. Propriety software and analytics allow Ocean Tomo to identify relevant buyers wishing to acquire assets in any technology category. Non-core assets not abandoned may be sold privately, at public auction or via an open voice brokerage network.
Ocean Tomo further assists clients in establishing transfer pricing strategies relating to trademarks, copyrights, patents, and other intangible assets. Such services include establishing royalty rates, and licensing programs that incorporate optimal tax planning strategies.
IP-Backed Debt Enhancement
Ocean Tomo’s CRRA team will work with clients’ existing lenders as well as tap known IP savvy investors and alternative capital sources to help restructure current debt to expand capacity or reduce borrowing cost. In most cases, a client’s IP is positioned as first lien collateral. A commercialization plan is established, wherein Ocean Tomo will work with all stakeholders to capture further value from the IP estate sharing in such incremental revenue.
Ocean Tomo and its financial restructuring partners will jointly advise clients regarding more traditional corporate finance solutions by assisting in executing transactions including in and out-of-court recapitalizations, accretive M&A, and debt or equity financings.
IP Litigation “Right-Sizing” & Enforcement Funding
An assigned CRRA team will work with Ocean Tomo’s Financial Testimony and Valuation divisions to review the client’s complete portfolio of pending IP litigation and to advise management on realistic net present value recoveries or exposure, allowing a more rational expenditure of legal budgets. Recognizing that core IP assets remain a source of value creation and competitive differentiation, Ocean Tomo can also present well-funded partners willing to cover legal and other related expenses.
FASB 141 and 142 Purchase Price Allocation & Impairment Valuation
Financial accounting and reporting for acquired intangible assets must be addressed under FASB 141 and 142. FASB 141 governs how intangible assets that are acquired individually or with a group of other assets should be accounted for in financial statements upon their acquisition. FASB 142 requires an annual two-step process of valuation to determine whether any impairment has occurred to the recorded intangible assets. Whether supporting solvent or distressed purchasers or sellers, Ocean Tomo can undertake the valuations necessary to complete this accounting, thereby expediting transaction closings and assisting with efficient and accurate financial statement completions.
Financial Services Litigation Support & Expert Testimony
Ocean Tomo’s experts have backgrounds in strategy consulting, structured finance, financial exchanges, credit financing, and equity based investments decisions. Ocean Tomo’s CRRA team has unique insight into accounting for losses due to improper or fraudulent lending, borrowing or investment practices, thereby helping clients to achieve a full and accurate recovery. The CRRA team also has experience in accountant’s liability related to proper accounting and auditing standards, as these issues may become important to any claims made.
Operational & Financial Advisory or Interim Management
Working alongside Ocean Tomo professionals, financial restructuring partners will assist management teams in developing and executing comprehensive plans to stabilize operations and restore long term financial viability. In select cases, seasoned professionals are hand selected by Ocean Tomo to assume C-level positions in client companies and take direct responsibility for executing operational turnaround plans and financial restructurings.