Stephen Robertson of Metis Partners

We spoke with Stephen Robertson, founder of business analysts Metis Partners, to find out how his company can help organisations and individuals in debt...

1) What exactly does Metis Partners do?

Metis Partners are business analysts and specialists in the assessment, exploitation, monetisation and sale of intellectual property assets ("IP assets"). IP assets can make up in excess of 80% of the value of a business and organisations should not underestimate the value in managing these assets properly.

So what can we achieve with IP assets?

- Use them as security for borrowings & investment
- Improve profitability by building new revenue streams against the assets
- Develop competitive advantages using them to create barriers to entry
- Use them to improve valuation of company prior to fundraising or exit

2) How long have you worked for Metis Partners and what did you do before?

I founded Metis Partners in 2003 to assist businesses with the maximisation of value from their IP assets. I have advised a range of enterprises including FTSE quoted companies, SMEs, global banks, insolvency practitioners and public sector organisations across Europe and the United States. I have a broad range of experience around IP assets including monetising IP assets, providing IP due diligence, delivering IP strategies, IP asset brokerage and IP asset valuation. I also advise on IP commercialisation, using IP assets as security to restructure debt and IP infringement and invalidity. I have amassed over 20 years experience in corporate finance and have worked in banking, business angel investment and the plc sectors.

3) What types of companies do you work with?

We have helped organisations of all sizes from private to plc, large or small and across all industries.

We work with:

- Company Directors / Management - helping them create value in their business through recognising and creating value around IP assets.
- Accountants/ Tax Advisors - helping their clients improve the value of their businesses and leveraging IP assets often through creating separate IPCo’s to hold IP assets.
- Venture Capitalists - carrying out IP due diligence work for them in advance of an investment in an IP rich company.
- UK Clearing Banks - helping them find and create ways to support companies by getting banks to understand the hidden value in IP assets that may exist in some of their clients and getting them to recognise they can take security over IP assets for new and further borrowing.
- Corporate Recovery (Insolvency Practitioners) and Turnaround Specialists - We open their eyes to the hidden value in IP assets in the companies they are working with and show them how they can be leveraged to borrow new money or restructure existing debt against IP assets.

4) How do you work with intermediaries or IFAs?

They will often have clients who are owners / directors of companies facing different business challenges and growth opportunities.  We can advise them of some of the services we offer and how they could add significant value to their companies thereby generating wealth for the owners of these businesses.  In addition we help their clients who are perhaps are in trouble / distress by demonstrating the value in the IP assets which have been ignored to date by banks and investors and which could help them recover.

5) Could you explain a bit more about how the process works?

Our engagement with companies in developing an IP strategy involves 3 stages:

Stage 1: IP Asset Recognition

At this stage we perform an IP audit of all IP assets across the business. This would typically be performed by breaking down the company’s business model into ten key areas of IP assets including: brands & reputation; patents; software; know-how; Key people and customer relationships. After identifying the IP assets which are present, an assessment of how the business depends on them is critical. This includes understanding how revenues are underpinned by IP assets as well as the product and service value propositions to the customer.

Stage 2: SWOT and Gap analysis

This step would involve intentionally focussed analysis seeking to understand what protection measures for IP assets are in place and any obvious weaknesses which may be present.

Stage 3: Value Building Services

Based on the findings and outputs of Stages 1 and 2 then this stage is about creating new and building further IP value in businesses to support many different strategic aims – increasing company value prior to exit, to gain a foothold in a new international market, protect a new research backed idea, to protect critical know-how in a new joint venture.

6) Could you tell us a bit about the corporate recovery procedure you offer?

We have built up a wealth of experience working with UK insolvency practitioners facing a number of diverse challenges in a range of insolvency scenarios. We specialise in assisting insolvency practitioners at a number of stages both pre and post insolvency. We can also support pre-pack negotiations and assist with cases where there is a high level of buyer interest in an insolvent company's IP assets.

We sell it!

IP Asset Sales: Whether it be selling a brand, patents or domain names, we have helped insolvency practitioners to recover over £6m for creditors from the sale of IP assets which prior to our involvement were often never considered valuable in an insolvency situation.

We help you to sell it!

“IMs for IP”: Information Memorandums for IP assets provide a detailed breakdown and cataloguing of the IP assets that exist within an insolvent company. These documents can be useful in a range of scenarios whether it’s highlighting the IP asset value to a number of prospective purchasers or identifying which IP assets require to be purchased by a Newco in a pre-pack administration.

We help you achieve fair value for it!

“Insolvency Valuations” Letters of Comfort: In order to comply with statutory duties and SIP 16, Metis Partners perform an independent analysis of the IP assets of insolvent companies. We catalogue and assess the IP assets in order to express an opinion on whether or not an offer received is fair.

7) Have you seen an increase in clients approaching you needing help to sort out their finances since the economic crisis began?

Yes and banks also – asking us to help them provide support to their clients who perhaps have a balance sheet that is too highly leveraged and they want to try and find a way to support them.  By getting banks to recognise that IP assets generate or contribute to the generation of revenues and by showing these IP assets have worth in their own right, banks are now beginning to look for ways to support companies through taking security over these IP assets in new corporate structures.

8) Do you expect the country’s financial situation to improve in the next 12 months?

I believe that the credit crunch and resultant working capital problems faced by many businesses will continue as banks tighten their lending books. As a result companies should be looking for alternative ways to ease cash flow and that’s where IP assets can make a real difference.

9) How do you think the industry has changed in the aftermath of the economic crisis?

The financial services sector has changed dramatically and practitioners are having to work a lot harder for their clients to add value to them – it’s not so easy!

10) With so many people in debt do you think more needs to be done to encourage people to take a better approach to managing their finances?

I believe more people in debt recognise that they need to tighten their belts and find ways to better manage their debt burden. There are lots of sources of information available on loans, interest rates, credit cards and balance transfer rates. And like high street banks, we as consumers are having to manage our money better.  Individuals in debt should perhaps look at moving debts around and chase the best interest rates or 0% balance transfer deals in order to ease the monthly cash flow burden – we are all in this together.