Benefits of Corporate Trade

Anchor’s programs improve EBITDA while delivering quality media and marketing services for less cash. Our clients use excess inventory, obsolete capital equipment and problematic real estate to pay for media, event experiences, experiential marketing, retail opportunities and much more.

Benefits of Corporate Trade

The Economics of Corporate Trade

Full Value Recovery for a $1MM Underperforming Asset

Full Original Book Value$1,000,000$1,000,000
Fair Market Value (Liquidation Value)$300,000$300,000
Trade Credit Purchase from Anchor$0$1,000,000
EBITDA Improvement$0$700,000
Normal Net Cost of Media$5,000,000 $5,000,000
Cash Outflow of Media $5,000,000 $4,000,000
Trade Credit Outflow for Media$0 $1,000,000
Income Statement Marketing Expense $5,000,000 $5,000,000
Cash Flow Savings$0 $1,000,000
EBITDA Improvement $700,000
Cash Flow Savings $1,000,000

Value Delivered

Financial Benefits

Financial Benefits

Improves EBITDA
Increases Cash Flow
Reduces Carrying Costs
Adheres to GAAP Accounting Standards
Marketing Benefits

Marketing Benefits

Increases Media Deliverables
Funds Additional Marketing Programs
Reduces Cash Outlays for Media Expenses
Sales Benefits

Sales Benefits

Protects Brand Equity
Safeguards Established Price-Points
Achieves Higher Price for Excess Inventory
Preserves Retail and Wholesale Relationships