Posts Tagged: "Harvey Sener"

Debt vs. Equity – The Financing of Patent Monetization

Of course, if the debt provider is doing their job properly the valuation of the assets is to provide a safety net in the event of default. The fact that certain patents are currently under assault has to weigh into the valuation proposition, but the debt provider is not in the business of providing money to acquire patents. The debt provider would rather never have the assets revert to them. They want regular payments to service the debt. Thus, who you work with matters on at least one level. “The story matters a lot, and management is super important,” Zur explained. “One should look at the management because it is extremely important how the company itself, not the assets, are going to succeed.” If management is bad that increases the risk and debt providers have to act accordingly.