Boustead Securities Receives 'Investment Bank of the Year' Award at IMPACT20

Boustead Securities, LLC (“Boustead”) received the 'Investment Bank of the Year' award at the Internet Marketing Association's IMPACT20 virtual conference held on October 2, 2020.

The annual IMPACT Awards exemplify best-in-class creativity, expertise and results achieved by the top practitioners of Internet marketing across every business segment.

IMPACT20 addressed innovation and pivoting during the pandemic, and featured a Keynote address from Steve Wozniak and industry leaders including Google, Microsoft, Amazon, Oculus VR, MGM, ViewSonic Americas, Newscorp, Irvine Company and Evite.

“Boustead is honored to receive the 'Investment Bank of the Year' award from IMPACT20” says Boustead Founder and CEO Keith Moore. “This year of unpredictable change further underscored our mission to serve the needs of our clients by creating opportunities and applying creative solutions, to not only survive but succeed through the pandemic and beyond.”

Boustead's team is defined by its tenacious execution and excels at completing difficult restructurings, financings, M&A transactions, and valuations in highly challenged situations.

Boustead's team of professionals have extensive experience in financing strategies, private placements and IPO’s, negotiating transactions, working with leveraged recapitalizations, asset sales, tax-free exchanges, and loan workouts. We are committed to helping our clients achieve appropriate capital structure solutions that provide adequate liquidity and financial flexibility.

Congratulations to all the IMPACT20 Awards winners. View the full list below:

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About Internet Marketing Association (IMA) The IMA is one of the fastest growing professional organizations in the world. Its mission is to provide a unique knowledge-sharing platform where proven internet marketing strategies are demonstrated and shared to increase each member’s value to their industry and their organization. Visit www.imanetwork.org for more information. About Boustead Securities, LLC Boustead Securities, LLC (“Boustead”) is an investment banking firm that executes and advises on IPOs, mergers and acquisitions, capital raises and restructuring assignments in a wide array of industries, geographies and transactions, for a broad client base. Boustead’s core value proposition is the ability to create opportunity through innovative solutions and tenacious execution. With experienced professionals in the United States, Boustead’s team moves quickly and provides a broad spectrum of sophisticated financial advice and services. Boustead is a majority owned subsidiary of Boustead & Company Limited, a diversified non-bank financial institution. For more information, please visit www.boustead1828.com.

CAUTIONARY STATEMENT CONCERNING FORWARD LOOKING STATEMENTS

This document contains forward-looking statements.  In addition, from time to time, we or our representatives may make forward-looking statements orally or in writing.  We base these forward-looking statements on our expectations and projections about future events, which we derive from the information currently available to us.  Such forward-looking statements relate to future events or our future performance, including: our financial performance and projections; our growth in revenue and earnings; and our business prospects and opportunities.  You can identify forward-looking statements by those that are not historical in nature, particularly those that use terminology such as “may,” “should,” “expects,” “anticipates,” “contemplates,” “estimates,” “believes,” “plans,” “projected,” “predicts,” “potential,” or “hopes” or the negative of these or similar terms.  In evaluating these forward-looking statements, you should consider various factors, including: our ability to change the direction of the Company; our ability to keep pace with new technology and changing market needs; and the competitive environment of our business.  These and other factors may cause our actual results to differ materially from any forward-looking statement.  Forward-looking statements are only predictions.  The forward-looking events discussed in this document and other statements made from time to time by us or our representatives, may not occur, and actual events and results may differ materially and are subject to risks, uncertainties and assumptions about us.  We are not obligated to publicly update or revise any forward-looking statement, whether as a result of uncertainties and assumptions, the forward-looking events discussed in this document and other statements made from time to time by us or our representatives might not occur.

Innovative Ways to Unlock the Hidden Value of a Company through Intellectual Property by Pete Conley

Boustead Securities' Head of Intellectual Property Banking and Managing Director, Pete Conley, and Aon's Chief Commercial Officer, Brian Hinman, recently lead Kontaksource's Kontakt Over Kaffe webinar, Innovative Ways to Unlock the Hidden Value of a Company through Intellectual Property. Click the video to watch the presentation.

About Pete Conley

Pete Conley joined Boustead in 2014, and has over 25 years of experience at the intersection of IP-related investment banking, equity capital markets and the forecasting of emerging new technologies. Pete's investment banking focus is on providing equity financing and M&A services to small-cap public companies with promising disruptive technologies and strong intellectual property (“IP”).  In addition to his role at Boustead, Pete is currently the Chief Operating Officer of ipCreate, a global leader in strategic innovation and patent quality services, where he is involved in creating and monetizing strategic patent portfolios through a variety of transaction types and deal structures — including patent sales, joint ventures, M&A and IP spin-offs into private or public companies. Prior to joining ipCreate in 2012, Pete’s 25 year investment banking and capital markets experience spans the financing of over 200 small-cap technology companies; including as Senior Managing Director at MDB Capital Group from 2003 to 2012, where he led that firm’s efforts for IP-based investment banking and IP equity research, culminating in the development of the PatentVest patent intelligence platform. Prior to that role, he was co-founder and Director of Research for The AnalytIQ Group/RDEX Research, an institutional equity research firm focused solely on patent research and analysis covering over 600 public companies and independently ranked for alpha in the top 10% of all ranked U.S. research firms. Pete also served on the founding team of E*Offering, the investment bank of E*Trade, where he was Managing Director and Head of Equity Capital Markets. Funded by General Atlantic, SoftBank, NEA and Battery Ventures, E*Offering was ranked by IDD as the #1 Internet investment bank with 30% market share and involvement in nearly 1 out of 2 Internet IPOs from 1999 to 2000. From 1991 to 1998, Pete was Head of Institutional Sales at Roth Capital Partners. Pete began his career with Lehman Brothers in 1988. 

Contact

Pete Conley

Managing Director Head of Intellectual Property (IP) Banking

(310) 383-7874

pete@boustead1828.com

About Kontaktsource: Kontaktsource is an invitation-only forum supporting private equity deal flow and origination. Participants are hand-selected active middle market private equity, family office and investment banking professionals. Investors meet with bankers in a 30–45 minute one-on-one private meeting setting to discuss deal sourcing and share current opportunities in the market. For more information, please visit www.kontaktsource.com

Considering an M&A? How New Guidance From The SBA Could Impact Mergers and Acquisitions

New guidance from SBA regarding PPP loans

PPP loans have been a lifeline for many businesses during the current economic downturn caused by the Covid-19 pandemic.

A lot of PPP loan recipients are still experiencing financial distress and are grappling with what the future may hold. We are seeing a marked pick up in owners of businesses with revenues of $10-50 million across a wide array of industry segments, who are now seriously considering a sale as the best path to maximize and realize enterprise value.

New guidance from the SBA regarding PPP loan recipients could potentially add time and complexity to the M&A process. These requirements need to be understood early in the transaction process by both buyers and sellers to avoid the potential for undermining the goals of both parties.

When does a change in ownership occur?

SBA regulations state that a change in ownership occurs when:

• Ownership interest or common stock of at least 20% is sold or transferred

• 50% or more the assets are sold or transferred in one or more transactions

• The entity is merged with another business

What approvals are required?

Depending on the specifics of each situation, a transaction may require the approval of the lender and SBA. Required approvals in the SBA guidance include:

No Approval Required

• If the PPP loan is forgiven in full or difference between the maximum approved amount and the loan amount is paid.

• Stock sale transactions involving up to 50% of the common stock or other ownership interest.

PPP Lender Consent

• Transactions involving a transfer of equity or a merger involving up to 50% common stock or other ownership interest.

• Prior to closing the borrower submits a complete application for loan forgiveness.

• Must escrow an amount equal to balance of PPP loan with the lender.

• Upon approval of the application borrower receives escrowed amount less any unforgiven amounts

SBA and PPP Lender Consent

• If the transaction is for more than 50% of the common stock or other ownership interest AND the full amount of the PPP loan cannot be escrowed, the following will generally have to be submitted to the SBA for approval of the transaction:

• Explanation of why the owner cannot repay the loan or escrow the necessary funds.

○ Copy of the PPP loan documents.

○ Copy of the PPP note.

○ Purchase Agreement.

○ Details on who will be responsible for the obligations of the borrower

for the PPP loan.

• Statement on whether the buyer has a PPP loan

○ List of all owners of 20% or more of the common stock or other

ownership interests of the buyer.

SBA Consent Timeline Transactions requiring SBA consent are expected to receive a determination in 60 days of receipt of the complete application as provided in the recently published guidelines. A word of caution, however, is that this is a new process and may take longer to implement at the beginning. Another caution, the application of funds received from multiple government loan programs can add additional time and costs to completing a transaction. In addition to these lender requirements, buyers, in particular, have to understand what financial obligations they're taking on, or risk severely impacting their return on investment. While the provisions of this new SBA guidance should not present any difficulties, this is just another “hoop to jump through” to completing an M&A transaction.Robert Rubin Robert Rubin joined Boustead as Senior Managing Director in 2020 and has over 35 years of experience in Mergers and Acquisitions, the last 25 of which have been specifically focused on the technical services marketplace including Aerospace, Defense and Government contracting in the Washington DC Metropolitan area. In addition to his background in M&A, he has extensive experience in corporate finance and development with public and privately held companies. He has been involved in more than 40 transactions worldwide, and served as President of the National Capital Chapter and on the International Board of Directors for ACG.  Robert is a FINRA registered representative and holds series 7, 24, 63, 79 and 99 licenses. For more information on M&A's contact: Robert Rubin (301) 537-8221 Robert.Rubin@boustead1828.com

This opinion is that of the individual and not necessarily that of Boustead Securities, LLC. This is not a solicitation or offer to buy or sell securities. There is no guarantee that any specific outcome will be achieved.

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About Boustead & Company Limited  Boustead & Company Limited is a diversified and comprehensive non-bank financial institution with offices in Los Angeles, New York, San Francisco, London and Beijing that is rapidly expanding in growth markets throughout the US and Asia. Through its principals and fully licensed subsidiaries, Boustead & Company possesses rich experience and exceptional capabilities in capital markets deal execution and is dedicated to providing best-in-class one-stop financial services to clients. Boustead’s comprehensive financial services platform consists of four operating units: Boustead Securities, LLC a US-based FINRA Broker/Dealer and middle-market investment bank; Sutter Securities Group, Inc., which owns four FINRA-regulated entities, Sutter Securities, Inc., Sutter Securities Clearing, LLC and FlashFunders Funding Portal, LLC, along with Sutter Securities Financial Services, Inc., Sutter Capital Partners, LLC a California Registered Investment Advisor; and Boustead Capital Markets, LLP a London-based FCA-regulated company. For more information, please visit www.bousteadco.com. Forward-Looking Statements This document contains forward-looking statements.  In addition, from time to time, we or our representatives may make forward-looking statements orally or in writing.  We base these forward-looking statements on our expectations and projections about future events, which we derive from the information currently available to us.  Such forward-looking statements relate to future events or our future performance, including: our financial performance and projections; our growth in revenue and earnings; and our business prospects and opportunities.  You can identify forward-looking statements by those that are not historical in nature, particularly those that use terminology such as “may,” “should,” “expects,” “anticipates,” “contemplates,” “estimates,” “believes,” “plans,” “projected,” “predicts,” “potential,” or “hopes” or the negative of these or similar terms.  In evaluating these forward-looking statements, you should consider various factors, including: our ability to change the direction of the Company; our ability to keep pace with new technology and changing market needs; and the competitive environment of our business.  These and other factors may cause our actual results to differ materially from any forward-looking statement.  Forward-looking statements are only predictions.  The forward-looking events discussed in this document and other statements made from time to time by us or our representatives, may not occur, and actual events and results may differ materially and are subject to risks, uncertainties and assumptions about us.  We are not obligated to publicly update or revise any forward-looking statement, whether as a result of uncertainties and assumptions, the forward-looking events discussed in this document and other statements made from time to time by us or our representatives might not occur.