IMAGINATION PARK BUSINESS PERFORMANCE: 57% July 2017
ASSET PERFORMANCE FACTORS (all are 1 to 10)
COMPETITIVE AND INTELLECTUAL PROPERTY RISKS 2 I’m not an industry expert here, but I have to believe there are a lot of content producers selling to Hollywood studios.
PRODUCT MIX 10
They have a well-chosen blend of music, script, all tailored to the new environment for movie production. Makes sense.
PRODUCT VALUE 3
Sounds good, though I have to believe the writer-in-the-basement, armed with a computer and software, can also produce original content cheaply.
Still, there ties to both people and places (namely India) is noteworthy While I resist thinking this way, the fact that none of 20 content packages haven’t been sold yet tells me it is a rocky road
MARKETPLACE (supply/demand, financing environment) 10 Very timely, given that major studios are craving cheaper content
PEER VALUATION 10
This is an original story. All the others are enormous companies.
BUSINESS STRATEGY (and operations) 5
Sound, though I’d like to here more nuts and bolts detail of selling the packages and getting the new venture launched.
MANAGEMENT (Ownership, g&a) 10
G&A of 700,000 is 8% of Market Value which isn’t low (I prefer 5%).
Although, this is mostly because of the low valuation.
Personalities ar appropriate for the Hollywood world FINANCIAL STRATEGY (cash, overhang) 5 Cash to last less than a year with little talk of additional financing isn’t good.
Minimal option warrant overhang, about 10% The previous balance sheet was a mess. This is both good and bad. The good is that the new CEO seems to know how to run a company.
MARKETING AND OPERATIONS (including project management) 2 Not enough detail on timelines and milestones No discussion of marketing, sales and ramping up staff