Oracle of NY

ScanBizCards - iPhone App

I've jumped on the iPhone applications bandwagon and am promoting an app that lets you conveniently scan business cards with your iPhone - ScanBizCards. We're getting lots of downloads a day for the free version and are moving up the ranks in the iTunes Store. We are looking for further publicity and advertising partners.

Unlike competing iPhone business card scanning applications:

• ScanBizCards is the only iPhone business card scanning application offering a free version that lets you try the core functionality before you decide to upgrade.
• ScanBizCards acknowledges that OCR is not perfect, so the image of the business card is always displayed side-by-side with the textual information to facilitate editing.
• Cards scanned by ScanBizCards have one-touch accelerators which can be used to instantly place calls, send emails, browse web sites, invite contacts to connect via LinkedIn and send follow-up reminders to your calendar.

ScanBizCards is better than a dedicated scanner:

• ScanBizCards does not have to be connected to a PC when you photograph/scan cards.
• ScanBizCards interfaces instantly with not just your address book but also with your email, calendar, iPhone and browser.
• ScanBizCards can instantly send a LinkedIn invitation.
• ScanBizCards costs $4.99 versus $60 to $300 for a dedicated business card scanner.
• New and useful features are added at no cost.

If you have an iPhone and collect lots of business cards, ScanBizCards is a great utility.

www.scanbizcards.com

http://itunes.apple.com/us/app/scanbizcards/id335047649?mt=8
 
Contact: Patrick Questembert
patrick@scanbizcards.com
917 250 4177
 
Joshua Persky
Joshua.persky@sloan.mit.edu
917 650 8700

$500 Reward for Business Valuation Leads

If you know anyone who needs a business valuation for any purpose: transaction, tax, investment, regulatory, financial reporting, divorce or corporate litigation, I will pay you $500 if your lead leads to valuations work for me and my best-of-breed valuation partners.

If your primary contact has a secondary contact who needs the valuation work, I will pay you $300 and your contact $200.

Please call me for all your valuation needs!

tel: 917 650 8700

Valuation Support for Complex Corporate Litigation

My partners for complex corporate litigation support are regularly chosen as experts for litigation matters in the Delaware Court of Chancery and other jurisdictions because of their experience and ingenuity. Their well-supported written reports and experience in testimony add tremendous value to complex cases. Some of their opinions have shaped case law.

My partners' areas of expertise include determination of fair value and fair market value, economic damages, intellectual property damages, and contractual issues such as material adverse effect clauses. Over the years, their valuation and damages opinions have been accepted by courts across the country.

Valuation Services and Job Raw

I am now offering valuation services by connecting potential clients with best practices valuations firms and experts in various niches of the valuation field, from ABS pricing to tax-related valuations and from transaction-related opinions to complex corporate litigation valuation support. Please contact me for your all your valuation needs.

I am also offering job-hunting advice. I was interviewed by Mekahlo of NBC LA News Raw and offered viewers some of the advice I have been writing about for the past few months.

www.nbclosangeles.com/news/local-beat/Job_Raw__OracleOfNY_com_Los_Angeles.html

Best Practice Pricing and Valuation

Attending the ABS East Conference in Miami was a wonderful experience. I learned much and made many new contacts.

Everyone was amazed by how far the markets had recovered in the past six months and seemed to agree that the worst was over - yet there was still plenty of concern about the shocks to come as banks may eventually have to write down loan reserves as loan losses.

Valuation and pricing seemed to be on everyone's mind and was the focus of more than several sessions and vendors. There were lively discussions about mark-to-market pricing versus modeling and analytics - and a consensus that the best practice is to use multiple valuation methods while providing transparency concerning methodology, data and assumptions.

Highlights of my visit included spending time on John Devaney's yacht, a wonderful dinner at the Fontainebleau's Scarpetta restaurant hosted by The Seaport Group (while Pres. Obama was dining in the hotel at a fund-raiser) and occasional glimpses of beautiful Miami bay and beach.

Valuations and Pricing of Asset Backed Securities (ABS)

I will be attending ABS East in Miami, Oct. 25-27, to assess the potential of the asset backed securities (ABS) valuation and pricing market.

The demise of Bear Stearns and Lehman Brothers and the restructuring of other investment banks not only created a dislocation in the trading market for ABS but also a dislocation in the pricing and valuation of ABS for investors such hedge funds, banks and pension funds who had depended on those investment banks and market-makers for their monthly net asset value (NAV) pricing.

http://secure.imn.org/web_confe/index.cfm?sc=20091001_SF_0006

Hedge Fund Portfolio Valuations

We offer the best service at a reasonable price.
A veteran of investment bank Houlihan Lokey where I was a full-time Consultant in the Hedge Fund Portfolio Valuations group and of accounting firm Weiser LLP where I was Senior Manager Valuation and Corporate Finance, I have produced hundreds of business and investment valuations for transaction, tax and regulatory purposes.
I am now offering my hedge fund portfolio valuation services to you.
I specialize in the valuation of private investments in debt and equity but offer a full range of valuation services in conjunction with a nationwide network of valuation professionals.
Please let me know if you would like a free consultation to discuss valuations.

Joshua Persky
Tel: 917 650 8700

Valuation Services and Consulting

Steps for producing a valuation for a bank loan to a private company:

1. Gather and review financial and legal documentation.
2. Note key loan parameters such as: interest rate, maturity date, type of loan (bullet or amortizing), first or second lien, financial covenants, up-front and other fees, pre-payment penalty.
3. Note key financial performance parameters: EBITDA, income, margins, cash flow, balance sheet (historic, current and projected).
4. Analyze key financial ratios: leverage, interest coverage, loan to value.
5. Perform DCF analysis.
6. Compare company to similar publicly traded companies.
7. Compare loan to publicly traded similar debt instruments.
8. If the company is distressed, determine the value of its assets.
9. If the company is in bankruptcy, determine the probability and timing of recoveries.

For competitively priced hedge fund portfolio valuations, business development corporation and private equity valuation services and consulting, please contact:

Joshua Persky
tel: 917 650 8700
email: joshua.persky@sloan.mit.edu

Automated Anti-Hacking Vulnerability Assessment Report

I am in touch with an interesting startup company whose mission is to "create a disruptive approach in the global online vulnerability assessment and compliance markets, by our cutting-edge automated security testing for web applications and network systems."

They claim to challenge their competition by having significantly more automated security checks.

They are looking to work with hosting providers, information security resellers, integrators and government agencies.

They are looking for customers, business partners and funding.

If interested, please contact me at joshua.persky@sloan.mit.edu.

Discounted Gifting Opportunities

There is an immediate opportunity for people considering gifting closely-held operating companies and family limited partnerships:

“Current Global Economic and Credit Crisis”

• Can support lower value conclusions in front of the IRS



• Operating businesses, marketable securities, and real estate worth less based on current business climate (less demand, no credit to fund business operations and acquisitions)



• Get closely-held business and real estate appraisals done sooner rather than later to support reduced values



• Can support greater discounts for lack of control and lack of marketability for minority (non-controlling) interests
  
  – Credit crunch, difficult for consumers and businesses to get loans, pay bills
  
  – Lack of affordable consumer credit reduces consumer spending and, as a result, weakens our economy
  
  – Public marketplace is disruptive, reflected in reduced pricing (lower values) for some of America’s strongest companies
  
  – Significant job losses and unemployment at high levels
  
  – If public companies are severely impacted, what about closely-held businesses?

Factors to Consider when Valuing a Business (cont.)

• Review trading multiples for comparable publicly traded companies in similar businesses
  – Market evidence to support value conclusion



• Review sale transaction multiples for comparable companies (public or private) in similar businesses
  – Market evidence to support value conclusion



• Managements track record and its ability to achieve its objectives



• Key employees, business referral relationships, customer dependencies, access to capital to support and grow business



• Applicable discounts for lack of control and marketability

Factors to Consider when Valuing a Business

• The nature of the company’s business and its history (milestones, profitability, growth profile)
  
  
• The outlook for the economy, subject industry, and competitive landscape (impacts demand)
  
  
• The financial condition of the company (use of debt)
  
  
• Analyze the past and future earnings capacity of the company
  – Investing is forward looking, use history to help understand the future
  
  
• Prior transactions involving the company’s stock (indication of value)
  
  
• The ability of the company to distribute earnings (dividends)

Lack of Marketability Discount

The size of the discount applied to a specific interest is dependent on many factors:

• Dividend capacity
  - Has, can, will the investment/company pay dividends?



• Probable holding period
  - How long is the investment term, 3 to 5 years?
  - When can it be sold
  - Prospects for liquidity



• Degree of control in the block of stock
  - Control interest is more marketable than minority interest



• Restrictions on transferability (right of first refusal)



• Company’s stock redemption policy 

In short, how and when can I turn my investment into cash?

The Benefits of Control

• Appoint or change management, elect board members



• Determine compensation, bonuses, and perquisites



• Set operational and strategic policy



• Liquidate or recapitalize the company, sell-off assets



• Sell the business



• Register company’s debt or equity for an IPO

In short, you have more control of the investment, timing and cash flows.

Business Valuation Discounts

 Especially for closely-held businesses:

• Lack of control (minority interest)
  
  Why pay less for the ownership interest?
  - Inability to control the investment
  - Inability to control timing of cash flows
  - Less control, greater the discount



• Lack of marketability (no ready market for the shares)
  
  Why pay less for the ownership interest?
  - When or how long before I can convert my investment to cash?
  - Current economic benefit? 
     Annual dividends 
     Some exit or sale event in site? 
     Longer the holding period, greater the discount

Size of discount depends on:

• Method used to arrive at value
• Level of control and marketability of the subject interest