Sunday, March 15, 2020

Customer Relationships - Corporate Asset?


Ownership of customer relationships is one of the most challenging issues in financial restructuring and distressed M&A for a service business. The inherent tension between maximizing the value of corporate intangible assets and individuals monetizing their personal goodwill is magnified under the microscope of a critical pending transaction. It’s common for the corporate debtor to seek value for these assets while the key people (who may or may not be owners) may run for the exits or put a toe in the water to be swept away to a competitor.

The company’s lenders and creditors have a voice in this debate when a company is insolvent, generally seeking to realize the value of all corporate assets, including if possible, monetizing the intangible assets. It’s logical because if the customer relationships belong to the corporate debtor, they are subject to bank liens and creditor claims. If the customer relationships are an asset that is untethered to the corporate entity, they are capable of walking out the door freely.

Rapid fire negotiating decisions require well-reasoned tactical judgment from the M&A advisor to navigate the mine field of issues related to retention of customer assets.

11 comments:

  1. An interesting dialogue is price comment. I feel that it is best to write more on this matter, it may not be a taboo topic however usually individuals are not enough to talk on such topics. To the next. Cheers. I hate my life

    ReplyDelete
  2. Pretty good post. I just stumbled upon your blog and wanted to say that I have really enjoyed reading your blog posts. Any way I'll be subscribing to your feed and I hope you post again soon. Big thanks for the useful info. Houston dating site luvfree.com/online_dating/united_states/houston

    ReplyDelete
  3. Wow, cool post. I'd like to write like this too - taking time and real hard work to make a great article... but I put things off too much and never seem to get started. Thanks though. Walmart Customer Service

    ReplyDelete
  4. No matter what the concern or problem of the customer is, you always need to use positive language. Active listening

    ReplyDelete
  5. Thanks for the blog loaded with so many information. Stopping by your blog helped me to get what I was looking for. Relationships

    ReplyDelete
  6. With respect to Trade, Chile exports more than it imports, with energy representing around 63% of Chile's exports in 2006, while it only imported around 25% in the same period. corporate investigations in spain

    ReplyDelete
  7. This blog has expressed its meaning in a very short but clear way, so succinct.
    여성자위기구

    ReplyDelete
  8. Well we really like to visit this site, many useful information we can get here. cheap corporate notebook printing

    ReplyDelete
  9. Initial You got a awesome blog .I determination be involved in plus uniform minutes. i view you got truly very functional matters , i determination be always checking your blog blesss. Rachel Rabbit White

    ReplyDelete
  10. Resource Protection alludes to shielding a people and organizations from common decisions by utilizing strategies, frameworks, methods and techniques created from legal law (directed by Congress or state councils) and customary law dependent on court choices.nevada divorce laws

    ReplyDelete