Services - Our Clients Intelligent Capital serves a range of technology-oriented clients including:
Common Client Situations We typically become engaged with our clients as they approach important decision points in the evolution of their companies, such as: 1. A private company determining how to get to the next level Once an emerging company has reached a key milestone in its development, it can be advisable for the board and management to take a fresh look at the best path forward for the company. A common example of such a milestone is the completion and initial deployment of a key product or technology. At this point, a decision must be made as to the best way to produce, market, sell, and support the product. Two alternative approaches are financing and building this infrastructure, or engaging with a strategic partner or acquirer that has this infrastructure already established in the marketplace. One thing our clients tend to have in common: they have created a product or technology that has the potential to enable a larger company to extend a core product line, enter a new segment, or increase differentiation and competitive advantage. Value is created by the leverage effect of bringing the client's products to bear on the substantially larger revenue and market capitalization of the potential partners. Given this, we believe it is important for the board and management of the smaller company to consider the strategic value of a partnership/ acquisition outcome, and not just the financial opportunity available to the company on a stand-alone basis. 2. A private company that has received an unsolicited inbound offer As an established company operates in existing and new markets, it may learn of a smaller company that has a unique technology or product position. Given the positive implications on the larger company's time-to-market or competitive position, it might choose to make an unsolicited offer for a strategic acquisition of the smaller company. This event, which initially seems like a positive development to the smaller company, can create a major challenge for the board of directors and the management team. Determining whether the offer is fair can be very difficult in a situation where the value is not based on financial metrics, but rather on strategic aspects of the company. Our experience suggests that an offer submitted in this fashion is often not representative of the fair value of the smaller company. Given this, we typically would advise the board to explore further options in an effort to gain more information and try to better understand the fair value of the company. 3. A public company that wants to divest a division or product group As strategies and business foci of larger companies evolve, they often find that a business unit or a product/technology group is no longer core to their strategic direction. If management believes that the unit might have value to others, they can capture the value that has been created, and provide for the future of the employees involved, by divesting the unit. Intelligent Capital's focus on the complementary value of the business unit's technology and team enables us to find the right partner, tell the story effectively, and drive the divestiture process.
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