Maximizing Intellectual Property and Intangible Assets: Case Studies in Intangible Asset Finance

As innovative companies struggle to raise funds, intellectual property and intangible assets are providing alternative ways of financing innovation. But greater awareness of them as an asset class is needed. Raising that awareness is the focus of a new report from Athena Alliance, Maximizing Intellectual Property and Intangible Assets: Case Studies in Intangible Asset Finance by Ian Ellis, a former U.S. Department of Commerce official specializing in intellectual property and international trade. The report outlines increasing, but still nascent, means of financing innovation based on these assets in public, private and venture capital markets. As industry has invested capital in research and development to develop new technology and advance other creative activities, intellectual capital has become a valuable asset class, according to the paper. In response, firms specializing in intangible-based financing are springing up, using them to raise capital for the next round of innovation.The paper details equity, equity-debt, debt, and sale-leaseback transactions, both private and public, that have helped companies raise capital, based on careful, rigorous analysis and conservative underwriting standards. For example, the author notes that in 2000, there were two public deals using royalty securitization, raising $145 million. In 2007-08,$3.3 billion was raised in 19 deals.Unlike some of the exotic financial vehicles, however, the financial products discussed in this paper are some of the most basic financing mechanisms in business. The innovation is in recognizing the value of intangible assets for corporate finance. These new financial firms are using traditional financial techniques in new ways to help innovative companies.But more should be done.One important step would be developing sound, industry-wide, underwriting standards, according to the report. For example, Small Business Administration (SBA) rules permit its loans to be used for acquisition of intangible assets when buying on-going businesses. Rules are unclear on whether those assets can be used as collateral. The paper recommends that SBA work with commercial lenders to develop standards for using intangible assets as collateral.The report builds on earlier Athena Alliance papers, notably Intangible Asset Monetization: The Promise and the Reality

Research on Mode and Risk Prevention of Agricultural Supply Chain Finance based on E-commerce

The rapid development of e-commerce has a profound impact on agricultural supply chain finance (ASCF), which is of great significance to enhance the resilience of agricultural economic development, realize the poverty alleviation effect of agricultural enterprises, integrate agricultural supply chain resources and solve the financing difficulties of agricultural enterprises. We analyze the participants and functions of the ASCF mode based on e-commerce, and the contract framework of various participants when they operate in the ASCF platform in this paper. Based on the agricultural industry chain, we analyze the operation process of accounts receivable financing mode, inventory financing mode and prepayment financing mode based on E-commerce. Finally, in view of the natural risks, credit risks, logistics risks, technical risks and legal risks that may exist in ASCF based on e-commerce, the corresponding countermeasures are put forward from the aspects of dispersing natural risks, building digital credit risk assessment system, building agricultural logistics network system, improving technical risk monitoring system, and improving relevant laws and regulations policy recommendations

Optimization of factorial portfolio of trade enterprises in the conditions of the non-payment crisis

The economic mechanism for factoring management of trade enterprises was improved by applying a tool for refinancing receivables involving third parties, which will contribute to the effective management of fundraising processes from the standpoint of the income approach. The instruments for the implementation of the economic mechanism of factoring management of commercial enterprises, consisting of five blocks were improved (analysis of commercial enterprise debtors’ solvency in order to transfer them to factoring services; analysis of accounts receivable and assessment of its real value; planning of cash flows from factoring operations; factoring implementation assessment; monitoring and control of the repayment of receivables in the process of factoring services), that allows substantiating practical recommendations for improving the level of factoring management. Based on the concept of a portfolio of investments, a factoring model was built to optimize the debtors of the enterprise

Public Education Network 2001 Year in Review

Provides a financial statement, donor list, and an update on PEN's programmatic work

Iowa Lottery Authority, Independent Auditor's Reports, Basic Financial Statements and Supplementary Information, Schedule of Findings, June 30, 2006

State Audit Report

The Universal Language of International Securitization

This article introduces the reader to international securitization, first by explaining the concepts of securitization and then by examining securitization in a cross-border context

Financial statement analysis of the steel industry (period 2013-2017)

The main objective of this project is the economic financial analysis of three companies: Acerin ox Europa S.A.U., Siderúrgica Sevillana, S.A., and ArcelorMittal Sestao, S.L. These three companies belong to the steel sector, being the first one well known not to say the most important and representative in Spain. At the same time, they all form part o f the Steel Producer Association (UNESID for its initials in Spanish), this association is the most important of its kind in Spain. Moreover, we are going to prove that although they belong to the same sector and association, a priori, they have different economic financial structure. After that, once we have all the information, and the financial indicators have been calculated, we are going to explain what the evolution was between 2013 and 2017. Furthermore, we are going to be able to predict what is goi ng to happen with the companies in the future. Finally, we will see how Acerinox Europa, S.A.U., Siderúrgica Sevillana, S.A. and Arcelor M ittal Sestao, S.L. have been able to survive the most financial crisis.El proyecto de fin de grado que se presenta a continuación tiene como principal objetivo el análisis económico-financiero de tres empresas: Acerinox Europa, S.A.U., Siderúrgica Sevillana, S.A., y ArcelorMittal Sestao S.L. Las tres compañías pertenecen al sector siderúrgico, siendo la primera de ellas una de las más importantes y representativas en España (por no decir la primera). Todas ellas al mismo tiempo pertenecen a la “Unión de Empresas Siderúrgicas (UNESID) que es la asociación de Empresas Productoras de Acero y de productos de primera transformación del acero en España. Se podrá comprobar que, aunque pertenecen a una misma asociación y mismo sector, a priori, tienen diferente estructura de propiedad. Una vez recopilados todos los datos y calculado todos los indicadores económicos-financieros, explicaremos cual ha sido la evolución de estos entre los periodos 2013 – 2017. Además, de ser capaces de pronosticar el futuro que le depara a cada una de ellas. Finalmente, veremos cómo Acerinox Europa, S.A.U., y Siderúrgica Sevillana, S.A. ArcelorMittal Sestao, S.L. han podido sobrevivir, o de qué manera han podido ser afectadas por la crisis más reciente.Universidad de Sevilla. Grado en Finanzas y Contabilida

A review of World Bank lending for electric power

This paper presents the result of an evaluation of about 300 power projects financed by the World Bank and IDA between 1965 and 1983. The study shows a declining trend in power sector performance in spite of Bank involvement in the sector. It recommends greater emphasis on : improving productive and allocative efficiency; increasing incentives for enhanced utility efficiency; strengthening of power-energy-macroeconomic linkages; improving investment planning to achieve a better balance between generation and distribution, and giving greater emphasis to rehabilitation and maintenance. Sector restructuring and institutional reform is also recommended to improve the social compact between government, consumers and the electric utility.Banks&Banking Reform,Environmental Economics&Policies,Economic Theory&Research,Health Monitoring&Evaluation,Business Environment

Development financing during a crisis : securitization of future receivables

Mexico's Telmex undertook the first future-flow securitization transaction in 1987. From then through 1999, the principal credit rating agencies rated more than 200 transactions totaling $47.3 billion. Studying several sources, the authors draw conclusions about the rationale for using this asset class, the size of its unrealized potential, and the main constraints on its growth. Typically the borrowing entity (the originator) sells its future product (receivable) directly or indirectly to an offshore special purpose vehicle (SPV), which issues the debt instrument. Designated international customers make their payments for the exports directly to an offshore collection account managed by a trustee. The collection agent makes principal and interest payments to investors and pays the rest to the originator. This transaction structure allows many investment-grade borrowers in developing countries to pierce the sovereign credit ceiling and get longer-term financing at significantly lower interest costs. The investment-grade rating attracts a wider group of investors. And establishing a credit history for the borrower makes it easier for it to access capital markets later, at lower costs. This asset class is attractive forinvestors-especially buy-and-hold investors, such as insurance companies-because of its good credit rating and stellar performance in good and bad times. Defaults in this asset class are rare, despite frequent liquidity crises in developing countries. Latin American issuers (Argentina, Brazil, Mexico, and Venezuela) dominate this market. Nearly half the dollar amounts raised are backed by receivables on oil and gas. Recent transactions have involved receivables on credit cards, telephones, workers'remittances, taxes, and exports. The potential for securing future receivables is several times the current level ($10 billion annually). The greatest potential lies outside Latin America, in Eastern Europe and Central Asia (fuel and mineral exports), the Middle East (oil), and South Asia (remittances, credit card vouchers, and telephone receivables). One constraint on growth is the paucity of good collateral in developing countries. Crude oil may be better collateral than refined petroleum. Agricultural commodities are harder to securitize. Another constraint: the dearth of high-quality issuers in developing countries. Securitization deals are complex, with high preparation costs and long lead times. The ideal candidates are investment-grade entities (in terms of local currency) in sub-investment-grade countries (in terms of foreign currency). Establishing indigenous rating agencies can slash out-of-pocket costs. Developing standardized templates for certain types of securitizations might help. A master trust arrangement can reduce constraints on size. Multilateral institutions might consider providing seed money and technical assistance for contingent private credit facilities.Financial Intermediation,Payment Systems&Infrastructure,International Terrorism&Counterterrorism,Banks&Banking Reform,Environmental Economics&Policies,Financial Intermediation,Banks&Banking Reform,Housing Finance,Environmental Economics&Policies,Economic Theory&Research