Sample transaction – Sherwood Trading
What are the key steps in a traditional corporate trade transaction?
A traditional corporate trade transaction restores value to underperforming assets by exchanging them for an Agreement to purchase media or other services.
The key steps are:
- Client Need Assessment: The customer identifies an underperforming asset that needs to be disposed.
- Client Goal Assessment: The customer and Sherwood collaborate to create transactional objectives and strategic objectives. This includes parameters for re-selling the asset as well as media plan specs.
- Project Proposal: Discussion and agreement for asset disposition and integrated media activation using a blend of cash and trade credit.
- Asset Implementation: Sherwood invests in the customer asset at an agreed-upon value, using a trade credit as the transaction currency. Title to the asset transfers to Sherwood.
- Asset Disposition: Sherwood re-sells or disposes of the asset according to strict, agreed-upon customer guidelines.
- Media Activation: Sherwood purchases media for the customer, coordinating with customer agency. Sherwood uses cash and customer trade credit.
- Accountability and Fulfillment Phase: Sherwood analytics and Independent Audit Program measure and validate achievement of the transactional and strategic objectives.