ABF Journal, February 2007
February 2007

A Balancing ActAsset-Based Lenders & Equity

Sponsors Pair up to Seize Opportunities



Perfect Pairings… ABLs, Equity Sponsors in Due Diligence Balancing Act
By William Henrich, Getzler Henrich & Associates

As the private equity-buying spree continues, many ABls are going along for the ride. In this environment, lenders need to understand the true profile
of the company and the risks involved in the early stages of the deal. (Ref # IND089)

Union Bank Commercial Finance: Product Specialization, Strong Defensive Line
By Amanda Gutshall, Assistant Editor

In the fast-paced ABl industry, it’s becoming even more important for each player to stand out in potential borrowers’ minds. Union Bank of
California’s Commercial Finance and Global Trade Services groups, headed by Mike Murphy, are going farther than the typical increase in advertising.
(Ref # COMP020)

2007 CFO Outlook: Cautious Optimism Prevails When Determining Economy’s Effect on Manufacturing
By Joyce White, Bank of America Business Capital

Six hundred CFOs were asked their opinions on the economy, financing, M&A activity and their involvement in foreign markets in Bank of America Business Capital’s ninth annual CFO Outlook. Turn to page 4 to see what they had to say. (Ref # IND090)

Go the Paperless Route… Automating Treasury Management Services
By Vito Abbate, Bank of America Business Capital

Treasurers who strategically combine traditional treasury management services, along with new electronic remittance and disbursement solutions, can help their businesses achieve greater liquidity, operational efficiency and cash control. (Ref # TECH008)


If you Build it… Value Creation Model Shows Buyers Your Company’s Worth
By John M. Collard, Strategic Management Partners, Inc.

Determining value is more art than science. True value can only be established at the time of a transaction, where a willing buyer tenders payment and a willing seller accepts it in exchange. A Value Creation Equation can build worth into your company. (Ref # APP033)

Transforming Debt to Equity: Fourth Circuit Rules That Bankruptcy Courts Have the Power to Recharacterize
By David A. Beck and Mark G. Douglas, Jones Day

The ability of a bankruptcy court to reorder the priority of claims by means of “equitable subordination” or “recharacterization” of debt as equity is generally recognized. Still, the Bankruptcy Code itself expressly authorizes only the former leading to confusion among the courts. (Ref # LGL067)