© 2011 DIVERSIFIED BUSINESS STRATEGIES, LLC. 2011 | ALL RIGHTS RESERVED
Our Strategy
DBS has developed a proprietary analysis and screening process that enables the evaluation of assets and assigns values in a disciplined manner.
We have various opportunities through which we can acquire distressed assets. DBS has a unique approach to maximize value and return and has been successful liquidating assets in all three currently available strategies (see Performance History) listed below:
FDIC One-Off Purchases
When a bank fails the FDIC is charged with managing and liquidating the banks assets. The FDIC liquidates assets through multiple debt exchanges. The assets are grouped into pools and can be sorted by collateral type, geographic location and performing status. DBS is registered, qualified and approved to participate in all the major debt exchanges. Assets are purchased through a closed bid process and DBS takes 100% ownership upon a successful bid.
FDIC Structured Sales
DBS is qualified to act as a liquidation partner with the FDIC for large blocks or pools of notes seized from failed banks. DBS has control and liquidation discretion of the asset notes subject to an FDIC participation agreement. When a note is serviced or sold, DBS shares in the profits with the FDIC. DBS can elect to service, hold, refinance or sell off performing and non-performing notes. However, DBS must liquidate the pool of notes within a 7- year time frame.
Bank Liquidation Sales
DBS can also purchase discounted assets directly from banks who are under the scrutiny of the FDIC but have not yet been taken into receivership. Oftentimes these banks are extremely motivated to liquidate troubled assets in an attempt to free up their balance sheet, maintain mandatory liquidity levels and bank paper status.
Each strategy above requires numerous hours of research and due diligence. DBS has developed a proprietary analysis and screening process that enables the evaluation of assets and assigns values in a disciplined manner. This process has proven invaluable to the success of DBS, and has enabled DBS to minimize risk and achieve healthy returns at the same time.
