Structured Solutions

The Structured Solutions area deals proactively or reactively with regard to commercial or non-commercial obstacles faced by our Clients.  As a general rule there is a solution to every problem and whether it exists or is potential, an option is to consider alternative structures to counter the problem or risk.

The classic types of structures may incorporate legal entities but there is also the opportunity to alter tact with a new facet or series of intermediation in place that provides reasonable and effective mitigation or alternatives.

An example of a Structured Solution is as follows:

Company A provides raw materials to Company B who processes and distributes them as value-added products.  Company A has the Intellectual Property (IP) to a new product idea for Company B.  If Company B were to offer the new product where there is currently no supply but enormous potential demand the upside would be significant.  How does Company A (an upstream provider) maintain an interest in the new product without market risk with Company B (a downstream operator)?

A structured solution is to establish a JV between Company A and Company B whereby Company A provides the IP and raw materials, Company B provides access to the market with the distribution of the finished product and both companies enjoy the benefits of Company A’s product development despite Company A not having access to the market and Company B not having access to the IP.

To initiate a confidential, commercial discussion please use our contact us page.