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FEATURES M&A, Capital Markets Update Ref# MERG011
In this article, Tim Stute, managing director and principal at Milestone Advisors, assesses 2010 in terms of merger and acquisition activity in the commercial finance sector. While such activity has increased in the later half of last year, valuations remained low due to lack of competition from banks. In looking forward to 2011, Stute expects steady improvement in M&A activity with modest, yet rising deal values for the near term. By Tim Stute, Milestone Advisors
Offense Versus Defense Applies to More Than Just Sports
Ref# MERG012
The period since 2008 has been marred with economic difficulties and wariness in financial markets resulting in noticeably less M&A activity. However, looking at the completed deals, they appear to fall in one of two categories: offensive or defensive in nature. By David Berliner and Michele Michaelis, BDO Consulting
Proposed UCC Article Amendments That Will Impact Secured Lending Ref# CFR003
With Article 9 provisions changing and inconsistencies among the codes of various jurisdictions, maintaining a secure position can be a complex responsibility. Bottom line, secure positions are the lifeblood to an asset-based lender and an understanding of changing regulation is critical to success. By Dan Lias, CT Corporation
Unwrapping Ocean Fresh Seafood’s Multi-Million-Dollar Fraud Ref# FRD024
There was something fishy going on at Massachusetts-based Ocean Fresh Seafood, and it wasn’t just the inventory. By the time Wells Fargo auditors found the source of the smell, they’d been defrauded out of at least $7 million, and the man who allegedly orchestrated the scheme was in the wind. Here’s how it played out… By Christopher Moraff, ABF Journal Correspondent
Field Audits: When is Enough … Enough? Ref# FIELD017
The losses lenders experience at the hands of dishonest borrowers can be a very large proportion of the total loans outstanding, and can monopolize a significant amount of lender time. The use of field exams and other financial reviews can help to identify problems at an early stage, thereby allowing the lender time to take action to protect its exposure. By Juanita Schwartzkopf, Focus Management Group
FROM ALL FACETS
NEW ON THE SCENE A CORE Acquisition Creates the ‘Newest Star’ in the ABL Firmament Ref# COMP037
In early November, NewStar Financial’s acquisition of CORE Business Credit caused a positive stir in the asset-based lending community. The industry’s newest star, aptly named NewStar Business Credit, joins the dynamic forces of a seasoned ABL team and Boston-based specialty finance company, NewStar Financial. By Stuart P. Papavassiliou, Senior Editor
Turnaround Corner Workouts and the Dynamics in Bank Syndicates Ref# TM114
To conclude her three-part series intended to de-mystify the workout banker’s motivations, Kristina Anderson of Carl Marks Advisory Group examines some of the dynamics inside senior lender syndicates and how those dynamics affect the syndicate’s ability to respond in workout and default situations. By Kristina L. Anderson, Carl Marks Advisory Group
Factoring Focus The Importance of Doing Your Homework Ref# FAC105
Whether you perform your due diligence internally or outsource it, it is important that you do your due diligence before you enter into any lending or factoring agreement. A little homework on the front end will result in a healthy portfolio that is easily managed. More importantly, it will reduce your exposure to unnecessary risk. By Jackie Compton, C&R Credit Services
Bankruptcy Update Communicating With Lenders in Difficult Times Ref# BANK043
Regardless of the reason, when your business encounters serious challenges, your world shifts. These shifts occur on multiple fronts. One of the most important shifts is on the communication front, and how you interact with financial stakeholders — in particular your lenders, but also your investors, vendors and even employees. By Jay F. Kilkenny, The Finley Group
Legal Eyes Lemonade Inc. — Giving the Bankruptcy Process a Great Big Hug Ref# BANK044, LGL118
In the following article, SmithAmundsen bankruptcy attorneys Patrick Jones and William Hackney suggest that in some distressed situations, it might be time for lenders to take a different tack. Rather than engaging in a fight, a lender might consider “riding the horse in the direction it’s headed” to his or her advantage. By Patrick M. Jones and William S. Hackney III, SmithAmundsen
FinalCut NYT: ‘Great Liquidation’ About to Take Place on Wall Street ABF Journal illustrator, Jerry Gonzalez’ visual interpretation of a top-ranked abfjournal.com news story according to our visitors.
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Jan/Feb 2011 Issue