Monetize Intangible Assets
Unitranche Type Leverage at a Cost Similar to Senior Debt from a Partner Who Behaves Like Preferred Equity
A Sale-to-Service is the Sale-Leaseback for the Service Economy
The U.S. has moved from an industrial economy reliant on physical assets, like equipment, inventory and real estate, to a service economy reliant on intangible assets, assets often described as a company’s “know-how”.
Leeward’s Sale-to-Service™ monetizes server-based “know-how” found in a company’s mission-critical systems, processes or data, through a transaction structure that is similar to a sale-leaseback of physical assets.
Leeward delivers a low-cost, covenant-free, non-dilutive source of capital for liquidity events, management and shareholder buyouts, family transitions and acquisitions as an alternative to higher-cost debt or minority equity.
Enterprise Value & Sale-to-Service
Leeward’s Sale-to-Service™ (“S2S”) unlocks the fair market value of a company’s mission-critical systems, processes and data, assets which have been built, enhanced and customized over years and are essential to the company’s business model. These server-based informal intellectual property (“informal IP”) assets have little to no value a company’s balance sheet but contribute a large part of a company’s enterprise value.
Capital Structure & Sale-to-Service
Leeward’s S2S is an alternative to junior or mezzanine debt and minority equity. Leeward can and usually will provide senior debt alongside its S2S investments offering businesses a comprehensive low-cost non-dilutive source of capital.
Matthew Hagen – Founder & Managing Partner
Matthew is the founder and Managing Partner of Leeward. Matthew’s fifteen-year tenure as the CEO of a large data & technology-enabled logistics business makes him experienced in the intersection of a company’s operations with its technology, systems and data. Matthew implemented the first S2S transaction for his family’s logistics business, American Forest Products. Matthew started Leeward to deliver a similar capital solution for other closely held businesses seeking an alternative to equity and higher-cost debt. Matthew received a BA and BS from the University of Southern California and an MBA from Harvard Business School and has been a member of the Young Presidents Organization for over 16 years.
Leeward has partnered with a select group of family offices, credit funds, and structured equity groups to capitalize its investments. Leeward selects a capital partner for each investment based on the partner’s industry expertise and the size of the investment.