Appraisal

Streambank's™ valuation process for intangible assets is exceptionally thorough. Where we aren't already experts in your market at the start of the engagement we will be when we're through.

Foundation

Starting with a strong foundation in valuation fundamentals, we supplement the traditional rigor with a thorough review of the marketplace in addition to the analysis of license agreements, transaction agreements, and patents, as well as overall competitor analysis. Streambank understands that its appraisal clients may be faced with a variety of encumbrances in the disposition process, and our goal is to identify those encumbrances early and incorporate them into the appraisal. Additionally, Streambank utilizes market data to do a “reality check” of the results.

As we become experts in the borrower's market, we strive to educate the lender on the risks to their collateral. Every Streambank appraisal includes management interviews, in which we assess the skills and proficiency of the stewards of your collateral. Part of the value of a Streambank appraisal is our willingness and ability to include suggestions on collateral monitoring, including notification for license agreement creation or termination, changes in sales channel, marketing initiatives, and patent maintenance.

We additionally evaluate a variety of courses of action, should foreclosure and liquidation be necessary. These may include recommendations on monetization strategy, such as the choice between a sale and a license. They may also include a recommendation on sale strategy for diverse portfolios of intangibles (individual versus bundled sales) or sale procedure (auction versus orderly sale process).

Intangible assets are by definition unique. Don't settle for a “blue book” appraisal. Our goal is to make you a smarter lender, operator, borrower, and/or creditor. Streambank's appraisal clients are repeat customers.

Insight

Intangible asset valuations require tremendous market insight. The legal protections afforded to patents, trademarks, trade secrets, and other intangibles provide them with a uniqueness of value for which there is no blueprint. Therefore, in order to gain clarity and comfort regarding the values of these assets, valuation professionals must have extensive knowledge of the markets in which these assets are deployed.

Uniqueness

Streambank appraisals are unique — much like the assets we cover. Our appraisal starts by asking questions. For example, what is the lender's worst case? What would an investor pay for these assets during liquidation? Not only do we ask these questions, but we also investigate which investors there might be based on current market activity. Just because the assets are strategically necessary for the borrower, it doesn't always translate into strategic value for an acquirer. From there we build a liquidation and valuation scenario based on the insights we gain from market activity, assisted by the data we've collected from distressed sales of intangible assets.

Risk

Intangible assets are exposed to uninsurable risk. Unlike a building, which can be insured against fire, brands cannot be insured against mismanagement. A Streambank appraisal includes a management interview, in which potential risks to the brand are assessed, as well as management's ability to navigate those risks. Streambank appraisals communicate in writing the risks and opportunities, with the goal of improving collateral monitoring and assessing management's ability to handle risks as they arise. Additionally, Streambank can provide valuations to support the writing of “puts” when lenders are looking to maximize credit availability and minimize risk.

Trust

Streambank's extensive transaction experience creates clarity and trust in our valuations. Our market experiences, combined with data collected from a variety of other distressed intangible sales, provide a reality check to our appraisals. Our valuations are extensive and utilize the most recent and best-available corroborating market data, thus providing lenders with SWOT assessment tools to more effectively monitor collateral.

Follow–up

Streambank appraisals include a low-cost refresh or strategic update, in the event that market conditions change and become adverse to the borrower six and twelve months from the original valuation date. If the market “zigged” while your client “zagged,” Streambank can refresh the collateral valuation in a matter of days.