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# Leeward Capital Management

Low-Cost Non-Dilutive Capital for Closely Held Transactions

## Sitemaps

- [XML Sitemap](https://leewardcapitalmgt.com/sitemap.xml): Contains all public & indexable URLs for this website.

## Posts

- [Intangible Asset Finance 101 - What You Should Know About Formal & Informal IP](https://leewardcapitalmgt.com/intangible-asset-finance-101/) - By Matthew Hagen, February 2019 - Business owners, capital markets professionals, and trusted advisors should have a working knowledge of intangible asset finance because intangible assets are the rising asset class of the U.S. economy. Despite their value and importance, however, intangible assets are often overlooked and misunderstood. This article offers a high-level summary of
- [EverEdge IP - Video on Intangible Assets](https://leewardcapitalmgt.com/everedge-ip-video-on-intangible-assets/) - EverEdge Global - One of the world’s top three intellectual property strategy and technology commercialization firms, EverEdge IP provides specialist resources, objective, insightful advice, and management expertise to maximize returns from investment in intellectual property and research & development. EverEdge produced this video to help all stakeholder better understand the value of intangible assets and
- [The Economist - The world’s most valuable resource is no longer oil, but data](https://leewardcapitalmgt.com/the-economist-the-worlds-most-valuable-resource-is-no-longer-oil-but-data/) - A NEW commodity spawns a lucrative, fast-growing industry, prompting antitrust regulators to step in to restrain those who control its flow. A century ago, the resource in question was oil. Now similar concerns are being raised by the giants that deal in data, the oil of the digital era. Go to Article
- [Annual Study of Intangible Asset Market Value from Ocean Tomo, LLC](https://leewardcapitalmgt.com/annual-study-of-intangible-asset-market-value-from-ocean-tomo-llc/) - CHICAGO, March 5, 2015 – Ocean Tomo the intellectual capital merchant banc™ firm released findings from its Intangible Asset Market Value Study of the composition of equity market values. As reported by Geoff Colvin of Fortune Magazine, the components of S&P market value data for the start of 2015 reveals the implied intangible asset value
- [State Street Global Advisors - Transforming Intangible Assets into Tangible Value](https://leewardcapitalmgt.com/state-street-global-advisors-transforming-intangible-assets-into-tangible-value/) - BOSTON, September 20th, 2018 - The evolution of the global economy to one that is increasingly services-driven has been accompanied by an increase in the proportion of many firms’ value that is dependent on hard-to-measure intangible assets. This is particularly prevalent within the Information Technology and Health Care sectors, where the long-term value of new
- [Axial Middle Market Review - Every Deal Is a Tech Deal Today](https://leewardcapitalmgt.com/axial-middle-market-review-every-deal-is-a-tech-deal-today/) - “Software is eating the world.” “Every deal is a tech deal today.” Virtually every industry is impacted by technology in one way or another today. Even sectors that seem immune to the tech creep are no longer safe. The growth in technology is bringing efficiencies and new areas of growth to markets. by Danielle Fugazy
- [Forbes - How Intangible Assets Are Affecting Company Value In The Stock Market](https://leewardcapitalmgt.com/how-intangible-assets-are-affecting-company-value-in-the-stock-market/) - David Post leads the Sustainable Accounting Standards Board’s (SASB) team of sector analysts. The team is responsible for working with issuers, investors and other stakeholders in a rigorous research... Go to Article
- [Equities.com -  Finding the 84% of Stock Market Value That Most Investors Ignore](https://leewardcapitalmgt.com/equities-com-finding-the-84-of-stock-market-value-that-most-investors-ignore/) - The global economy is made up of capital in many forms. Fortune magazine’s recent annual release of the 100 Best Companies to Work For list and the annual Great Place to Work® Conference in April 2015 present opportunities for investors to better understand the wealth, capital, and asset value provided by, well, us. Go to
- [YouTube - Sally Blount: The Service Sector Will Save the Economy](https://leewardcapitalmgt.com/youtube-sally-blount-the-service-sector-will-save-the-economy/) - Go to Video
- [Forbes - Services, The Only Important Part Of The US Economy, Growing Nicely - PMI to 57.1%](https://leewardcapitalmgt.com/forbes-services-the-only-important-part-of-the-us-economy-growing-nicely-pmi-to-57-1/) - We are forever having people moan at us that manufacturing's a very important part of the American economy and that we must do more to make it grow strongly. The truth is actually rather different. Manufacturing is a small... Go to Article
- [Washington Post - Watch the U.S. transition from a manufacturing economy to a service economy, in one gif](https://leewardcapitalmgt.com/washington-post-watch-the-u-s-transition-from-a-manufacturing-economy-to-a-service-economy-in-one-gif/) - In 1990, the manufacturing industry employed more workers than any other sector in 36 states. Today, the picture is totally different: Manufacturing is the dominant industry in only seven states. Go to Article
- [WSJ - U.S. Service-Sector Activity Hits Decade-High](https://leewardcapitalmgt.com/u-s-service-sector-activity-hits-decade-high/) - The overall U.S. economy has expanded at a healthy pace in recent months, bolstered by consumer and business spending. Go to Article
- [Gatesnotes - Not enough people are paying attention to this economic trend](https://leewardcapitalmgt.com/gatesnotes-not-enough-people-are-paying-attention-to-this-economic-trend/) - By the second semester of my freshman year at Harvard, I had started going to classes I wasn’t signed up for, and had pretty much stopped going to any of the classes I was signed up for— Go to Article

## Pages

- [Home](https://leewardcapitalmgt.com/) - Low-Cost Non-Dilutive Capital Mezzanine-Type Leverage at the Cost of Senior Debt from a Partner Who Behaves Like Preferred Equity WATCH HOW AN S2S WORKS WATCH WHEN AN S2S WORKS [video_popup url="https://www.youtube.com/watch?v=lm9Ygi4lWZA?rel=0" text="Watch How an S2S Works"] A Sale-to-Service is the Sale-Leaseback for the Modern Economy Sale-to-Service Leeward’s patent-pending Sale-to-Service® structure, which is similar to a
- [Contact](https://leewardcapitalmgt.com/contact/) - Contact Us Sign up for news and articles on intangible value in the modern service economy, and for updates on Leeward and its Sale-to-Service solution for closely-held businesses. Email *Select list(s) to subscribe toWebsite Sign Ups Example: Yes, I would like to receive emails from Leeward Capital Management. (You can unsubscribe anytime)Constant Contact Use. Please
- [Investment Focus](https://leewardcapitalmgt.com/investment-focus/) - Investment Focus Industries, Transaction Types, & Investment Criteria Industries with Mission-Critical Systems & Data Business Services Financial Services Healthcare Services Media & Telecom Transportation & Logistics Consumer Services E-commerce & Digital Marketing Education Services Asset-Light Manufacturing Transaction Types An S2S® is a fit when value is moving out of a business or from one party
- [How It Works & FAQs](https://leewardcapitalmgt.com/how-it-works-faqs/) - How It Works How a Sale-to-Service Works, Transaction Examples, & FAQs Watch How & When a Sale-to-Service Works to 1% Per-Month Amortization None Board Rights Various None Board Representation 1) After-tax cost decreases with early termination. Sale-to-Service Overview Mission Critical Systems & Data – What makes a company’s systems, processes or data a fit for
- [Business Owners](https://leewardcapitalmgt.com/business-owners/) - Business Owners Low-Cost Covenant-Free Non-Dilutive Capital for Closely Held Businesses Closely Held & Related Party Transactions Matthew Hagen Testimonial mhagen@leewardcapitalmgt.com Matthew’s Work: (469) 718-7333
- [Terms of Use](https://leewardcapitalmgt.com/terms-of-use/) - Thank you for visiting the website of Leeward Capital Management, L.L.C. (“Leeward”, “we” or “us”). By accessing this website (the “Site”), you agree to accept the following Terms of Use for the use of the Site, which constitute a legal agreement between you and Leeward. If you do not accept these Terms of Use, you
- [Privacy Policy](https://leewardcapitalmgt.com/privacy-policy/) - Thank you for visiting the Leeward Capital Management website. This policy describes how we gather and use information from our website visitors. Your privacy is important to us. The only personally identifiable information we record is information collected through user-submitted forms. This information is used solely by Leeward Capital for internal business purposes, such as
- [Legal Notice](https://leewardcapitalmgt.com/legal-notice/) - This website is intended solely to provide information regarding Leeward Capital Management’s potential financing capabilities for prospective investment. The information provided on this website, including information regarding Leeward Capital Management’s current and historical portfolio investments, is not intended to recommend any company or investment described in this site and is not an offer or sale
- [Thank You](https://leewardcapitalmgt.com/thank-you/) - Thank You. Our team will be reaching out to you shortly.
- [About](https://leewardcapitalmgt.com/about/)
- [News / Blog](https://leewardcapitalmgt.com/news/)
- [Capital Markets](https://leewardcapitalmgt.com/capital-markets/) - Capital Markets
- [Investments](https://leewardcapitalmgt.com/investments/)

## Faqs

- [Intellectual Property – What is the difference between formal and informal intellectual property?](https://leewardcapitalmgt.com/faq-items/intellectual-property-what-is-the-difference-between-formal-and-informal-intellectual-property/) - Intangible value comes generally in two categories, formal intellectual property (“formal IP”) like copyrights, trademarks and patents and informal intellectual property (“informal IP”) which includes a company’s workforce, supplier and customer relationships, technology, processes, and data. These informal IP assets commonly referred to as a company’s know-how, are intangible assets of the business and are
- [Excluded Transactions –  What types of transaction are not a fit for Leeward and what are the exceptions?](https://leewardcapitalmgt.com/faq-items/excluded-transactions-what-types-of-transaction-are-not-a-fit-for-leeward-and-what-are-the-excecptions/) - C-Corporations: The double taxation of C-corporations creates an additional level of tax as C-corps pay capital gains on the sale of the assets and then shareholders have to pay dividend tax on the distributions. Exceptions include C-corporations with large operating losses carryforwards. SaaS Businesses: If the company’s revenue is based largely on license income, it
- [Underwriting –  What does Leeward’s evaluation process look like?](https://leewardcapitalmgt.com/faq-items/underwriting-what-does-leewards-evaluation-process-look-like/) - Leeward’s business evaluation is similar to a traditional credit process and also includes an evaluation of the mission criticality and fair market value of the company’s technology and/or data. Leeward’s technology and data evaluation does not increase the time to close compared to a traditional capital markets transaction.
- [Asset-heavy Businesses –  Will Leeward consider asset-heavy businesses?](https://leewardcapitalmgt.com/faq-items/asset-heavy-businesses-will-leeward-consider-asset-heavy-businesses/) - Asset-light businesses have a higher probability of being a fit for Leeward’s S2S but there are certain asset-heavy businesses that may also be a fit. Specifically, if the management, tracking or operation of the physical assets rely on the company’s systems or data, then the business is likely a fit.
- [Other Debt –  How does an S2S work alongside other lenders?](https://leewardcapitalmgt.com/faq-items/other-debt-how-does-a-s2s-work-alongside-other-lenders/) - An S2S can coexist alongside a third-party asset-based loan but if the transaction requires a cash flow loan, Leeward will generally provide the cash flow facility as well offering the customer a complete capital solution.
- [Repurchase & Extension –  Can the company repurchase its technology and data back at the end of the S2S?](https://leewardcapitalmgt.com/faq-items/repurchase-extension-can-the-company-repurchase-its-technology-and-data-back-at-the-end-of-the-s2s/) - Upon termination or maturity of the S2S, the customer has the right to repurchase the assets on commercially reasonable terms. The company can also extend the S2S for up to 15 years for a commercially reasonably monthly fee.
- [Tax Impact – What is the tax impact on the customer?](https://leewardcapitalmgt.com/faq-items/tax-impact-what-is-the-tax-impact-to-the-customer/) - S2S customers will pay capital gain tax on the initial sale of the assets and all S2S fees are operating expense.
- [Cash Flow – What is the impact on the company’s cash flows?](https://leewardcapitalmgt.com/faq-items/cash-flow-what-is-the-impact-to-the-companys-cash-flows/) - The S2S consumes the same or more cash on a pre-tax basis compared to traditional financing solutions but consumes less cash on an after-tax basis.
- [Term &  Fee – What is the duration of an S2S and what is the S2S fee?](https://leewardcapitalmgt.com/faq-items/term-fee-what-is-the-duration-of-a-s2s-and-what-is-the-s2s-fee/) - An S2S agreement is generally between three and six years but can go longer in certain circumstances. The S2S fee has a fixed and variable component allowing fees to adjust based on the company’s performance. All fees are operating expense to the company and contingent on service.
- [Sale-to-Service – What is a Sale-to-Service™?](https://leewardcapitalmgt.com/faq-items/sale-to-service-what-is-a-sale-to-service/) - The S2S is similar to a commercial real estate sale-leaseback but rather than buying tangible assets like equipment or real estate, Leeward acquires a company’s systems, processes, and data which reside on a server in a data center or in the cloud. The S2S contract has financial similarities to a sale-leaseback but, among other distinctions,
- [Mission Critical Systems & Data – What makes a company’s systems, processes or data a fit for Leeward’s S2S?](https://leewardcapitalmgt.com/faq-items/mission-critical-systems-data-what-makes-a-companys-technology-and-data-a-fit-for-leewards-s2s/) - S2S candidates have mission-critical systems or data that are essential to the company’s business model. Systems are generally developed internally but can also be traditional enterprise resource systems (SAP, Oracle, etc.) that have been heavily customized. Propriety data is also a fit for Leeward even if the systems are not critical. If the company would
- [Early Termination –  Can the customer terminate the S2S early?](https://leewardcapitalmgt.com/faq-items/early-termination-can-the-customer-terminate-the-s2s-early/) - The customer has the right to terminate the S2S after an agreed upon period, generally two years. The termination fee is predetermined and is an operating expense like the monthly S2S fees.
- [Value Proposition – What is the S2S’ value proposition to the customer?](https://leewardcapitalmgt.com/faq-items/value-proposition-what-is-the-s2s-value-proposition-to-the-customer/) - S2S customers must value Leeward’s S2S attributes more than the higher pre-tax cash flow offered by modestly amortizing term debt or equity. Leeward’s S2S solution offers non-dilutive, covenant-free capital at an after-tax cost competitive with a senior cash flow loan but in amounts greater than traditional mezzanine or unitranche debt.

## Categories

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