Sound corporate governance cannot be separated from corporate integrity.

 

 

 

 
 

YAKE & ASSOCIATES, INC., CASE HISTORY DESCRIPTIONS

Your Confidential Business Resource: Providing Integrity Solutions

 

ABOUT US: Yake & Associates, Inc. is a discreet incident-management and investigative consulting firm specializing in providing institutional investors, fund managers, lenders, creditors investment bankers, venture capitalists and senior managers in troubled companies with sophisticated business consulting and intelligence services designed to reduce risk and maximize returns. 

 

Whether we are conducting a comprehensive “drill-down” / due diligence review of an investment target, assessing the credibility of an executive management candidate or compiling intelligence for a portfolio manager our mission is to protect clients' interests throughout the life of the investment. 

 

Our research techniques are tailored:
  1. To analyze the present level of risk
  2. To analyze the potential of future risks
  3. To identify ways to mitigate those risks; by producing a “needs assessment” that would:
       a. evaluate the investment potential of the business, and
       b. analyze what would be required to turn the Company around.

Since the company's inception in 1985, Yake & Associates, Inc. has proven its value to clients time and time again by alerting clients to unmitigated risks, control failures/weaknesses, flawed business practices, management/board inconsistencies and out-right fraud, which left undetected would have resulted in significant financial embarrassment and enormous loss of investment capital.  Ultimately, we provide our clients with the timely intelligence they need to make more profitable and better business decisions.

 

SERVICES:  Yake & Associates, Inc. has conducted investigations on behalf of its clients on individuals and companies located throughout the United States and around the world. Our core services include:

 

Investment Risk Assessment:  Yake & Associates, Inc., supports clients' investment strategies and decisions by providing comprehensive due diligence investigations of foreign and domestic targets. Services include:

  • Pre-transaction due diligence
  • Post-transaction due diligence
  • Executive and management profiles
  • Revenue and performance examination / analysis / verification
  • Vendor & customer interviews
  • Public record analysis
  • Reputation assessments

Business Intelligence: Yake & Associates, Inc., helps portfolio management company clients better understand their business risks by providing critical intelligence on strategic partners, vendors, distributors, licensees/licensors and customers. Services include:

  • Pre-transaction due diligence & intelligence
  • Due diligence investigations
  • Merger & acquisition support
  • New market analysis
  • Competitor intelligence

Litigation Support & Legal Intelligence: Yake & Associates, Inc., provides legal intelligence and litigation support services that enable clients to pursue successful legal strategies and protect corporate assets. Services include:

  • Pre-litigation intelligence 
  • Recoverable asset location
  • Witness location and identification  
  • Adverse witness assessment
  • Verification of facts 
  • Patent, trademark & copyright protection
  • Trade secret investigations
  • Unfair trade practice investigations

Stock Trade Analysis: Yake & Associates, Inc., provides clients a detailed understanding of the forces that influence securities by investigating corporate behavior, insider trading patterns, and the key players behind the trades. Services include:

  • Long and short position analysis
  • Proxy contest intelligence
  • Stock manipulation investigations
  • Internet message board monitoring

CASE HISTORIES

An institutional investor & VC firm planning to fund an e-commerce retailer and turned to Y&A after suspicions arose about the integrity of the company's CEO. Our eleventh hour investigation confirmed our client's fears. The subject had previously founded, bankrupted and stripped an identical company of its assets, and then evaded creditors through an intricate network of nominee holders and foreign bank accounts.  After being debriefed of our findings, our client walked away from the deal.

 

A portfolio company in the fiber optics industry was forced to fire its recently hired CEO after he proved incapable of handling the requirements of the position. Prior to fulfilling its contractual obligation to pay the subject a multi-million dollar severance benefit, Y&A was retained to confirm his qualifications and investigate alleged improprieties, something the company had originally neglected to do. Our investigation revealed the subject had grossly misrepresented his professional history and areas of expertise. The information enabled our client to negotiate a significantly lower severance package and reclaim the fees paid to the recruiting firm that had placed him.

 

An investment bank planning to take public a retail company retained Y&A for a last-minute due diligence project. Our review showed significant gaps between the company's representations of performance, its current business practices, and the actual reported scope of revenues and its puffed- up/overstated inventory levels. Further, our inquiry revealed ties between the company's executives and brokerage firms under investigation by the Securities and Exchange Commission. Our client quickly backed out of the deal.

 

A hedge fund was considering financing a specialty retail start-up when it retained Y&A to assist with part of the due diligence process. During our review, Y&A discovered the company's product received mixed reviews during beta testing by key users in the industry.  Further, Y&A learned a rival company was nearing product roll-out and had recently gained access to funding and major distribution channels through an alliance with a major telecom provider.  After being informed of the increased risk, our client was able to revise the scope and structure of the investment.

 

A portfolio company interested in the satellite communications industry restructured a strategic investment after a Y&A investigation revealed weaknesses in the target company's reported performance. During our review, we learned that nearly every client the Company claimed it had sold satellite products to had been fictitiously fabricated. Furthermore, half of the target company's original project management staff had defected in recent months. As a result, customers were threatening to terminate contracts, jeopardizing future revenue flow. Another significant problem was the company's president, recruited a year earlier and whose brash style alienated staff and clients were also creating huge problems. Based on the information, our client moved the president to other responsibilities and re-recruited the necessary talent for the company's success.

 

A VC firm was concerned about a portfolio company in the retail distribution industry that was losing market share to its competitors. Y&A found that its competitors had developed a more efficient inventory control and productivity technology. Over the course of 12 months, Y&A provided the client with a steady stream of intelligence regarding the competitor's merchandise management systems, marketing and strategic plans for the enhancing inventory technology. The information enabled the client to initiate measures designed to counter the threat of the competitor's new technology. As a result, our client's portfolio company suffered no market share erosion during this period.

 

 

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Yake & Associates, Inc.    •     Email    •     207-985-6320    •     P.O. Box 42, Kennebunk, Maine 04043