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TI Partners Memorandum
54 W 40th Street, Suite 827
New York, NY 10018
Subject: Advice to Navigate Current Market Environment
Clients and Network,
As the economy and the broader public reacts to the implications of the coronavirus, we’re all faced with a very different
set of circumstances and predicaments – both on the business and personal front. As trusted advisors, it’s our role at TI
Partners to help our partners identify the best path forward through what is an incredibly tumultuous time for several
reasons, and we wanted to share some of that thinking with you.
Whenever we encounter a situation or opportunity, we aim to assess, understand and plot. The coronavirus and the
current recession is no different – whether temporary or prolonged. We have to keep our wits about us and focus on the
task at hand, evaluating it in the same way we would without the cacophony that currently surrounds all of us. That
begins with evaluation of the company or asset.
As with any proper evaluation, you have to understand the situation before you attempt to address how to fix it, namely,
by following discreet steps: (1) what is the body/asset we are looking at? From there, you must address the current
problem: (2) what is the impairment – in both scale and scope? Finally, (3) we must address the best course of action
going forward to maximize value.
(1) What is the Asset? In the world of finance, this starts with the base financials and business premise of our clients
and our relationships.
Imagine rewinding the clock two months to January. What, at that point, were the greatest
underlying strengths and weaknesses in the Company/asset? If, like the majority of our clients, the business model is
premised on high-gross-margin, recurring revenue, the likely answer is that the sound business model and growth instills
a very high degree of confidence, and therefore value, in the asset.
(2) What is the Impairment? Take the broader public markets out of the equation for this exercise. What are the
Company’s customer’s pai