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.
The Economics of Corporate Trade
Full Value Recovery for a $1MM Underperforming Asset
| BALANCE SHEET | WITHOUT ANCHOR | WITH ANCHOR |
| 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 |
| CLIENT FINANCIAL BENEFITS | ||
| EBITDA Improvement | $700,000 | |
| Cash Flow Savings | $1,000,000 | |
Value Delivered
Financial Benefits
Improves EBITDA
Increases Cash Flow
Reduces Carrying Costs
Adheres to GAAP Accounting Standards
Marketing Benefits
Increases Media Deliverables
Funds Additional Marketing Programs
Reduces Cash Outlays for Media Expenses
