Redux Holdings (“RDXH”) is a publicly traded company that acquires assets of underperforming and distressed companies on a non-cash basis and isolates, recombines and manages those assets to increase their value and to develop profitable strategic options. Redux Holdings is distinguished by the extensive experience of company personnel in quickly identifying, analyzing and stabilizing underperforming and distressed companies or business units and effecting rapid turnaround and asset monetization.
Redux Holdings offers a means for the owners of underperforming and distressed companies to record cash values for sales of the companies, and to secure warrants for possible future appreciation while disposing of unwanted business entities. Redux represents a new approach to creating value from underperforming and distressed companies.
Redux Holdings seeks to acquire assets that can be obtained at heavily discounted prices from sellers looking to liquidate assets. The company also looks to purchase assets that have the opportunity for significant price appreciation. By acquiring these types of strategic assets, Redux Holdings attempts to maximize return on investment for shareholders.
The target market for acquisition by Redux Holdings is the universe of underperforming and distressed business units that have tangible and intangible assets. These businesses typically are mature companies that are delivering products or services with revenues above $50 million a year and which have complete corporate infrastructures. These companies or business units have become a burden to their owning entity, often due to financial underperformance or because they are a distraction from the core business.
Target companies for Redux Holdings are likely to be referred from hedge funds, venture capital firms, banks, and other investment organizations seeking better exit strategies. The number of sources of distressed strategic assets is enormous:
Redux Holding’s principals are highly experienced at identifying, within a matter of days, valuable tangible and especially intangible assets of such target companies. Often, the owning entity is unaware of the value of such intangible assets.
Because the principals of Redux Holdings have been involved in underperforming and distressed business properties and turnarounds for decades, they have a large base of contacts that can offer underperforming or distressed companies or assets to Redux Holdings for evaluation and potential acquisition.
Redux Holdings believes it will have very little competition in collecting strategic assets from underperforming companies. Acquiring distressed business units is not a new concept but Redux Holding’s approach to the business is unique. The concept of acquiring “limbo” properties on a non-cash basis and offering cash-equivalent proceeds to the selling entity is original. Equally original is the concept of obtaining companies at bargain prices by targeting companies with “hidden” intangible assets. Except for Intellectual Property, most intangible assets are ignored. Where the intangible asset relates to employees, it is often viewed solely as an expense and not as an asset.
Competition for the distressed assets that Redux Holdings seeks to acquire are likely to come from:
However, these entities are not invariably competitors. Distressed-securities investors salvage firms and auction houses are often complementary to Redux Holdings, and are likely to provide potential companies for Redux to acquire. Distressed-securities investors may purchase the financial assets while liquidation firms buy the physical assets, leaving the intangible assets such as customers, sales channels, prospect data bases, IP, R&D, engineering and infrastructure intact and available for acquisition by Redux Holdings.