Alternotio origins came from accumulated experience. While liquidating asset in the Assignment for the Benefit of Creditor process, non lead assets, that had their development halted at some point (usually 36 to 48 months prior to filing), appeared to generate interest in the market and sell. The sales of these non lead asset sales revealed the inherent bounds of running business in general – time.
Allocation of “what” one would spend time on, therefore dictated the money spent. Would sales of those assets before the decision to close the firm have made a difference? There is no “reasonable” manner with which to determine the impact that selling off non lead assets would have had in those situations. The sale of non lead assets within the confines of a “normal” business should have the following out comes. They are:
- reduces costs ranging from storage space to patent filings
- demonstrates fiscal awareness to the market place
- focuses on attaining the objectives surrounding one’s lead assets
The shortest cycle time on a deal (taking an ad hoc survey of buyers and sellers, that have been active in evaluating sales) was found to be twenty four months, excluding the negotiations around a deal closing. Time again governs matters, especially in a negotiated format. Should one spend any time on a negotiated sale of a non lead asset?
Alternotio employs a sealed bid sales process, therefore bounding time and costs. Selling non lead assets through such a process does not provide certainty of price paid by the purchaser, but the sale does not steal time away from a firm’s strategic focus. The sealed bid sale has a start and a finish. The conclusion on a negotiated deal occurs when all the parties agree – the date is not certain, even if price can be agreed upon.
Negotiations on non lead assets in most situations maybe time better spent pursuing an incremental licensing opportunity on a lead asset. There are always exceptions to a “rule”. Determining an exception to the “rule”, even if time is not a factor in determining the exception, may still not make a negotiated sale cost effective. The emotional aspect of negotiating cannot be overstated.