Fulcrum’s personnel have extensive experience in most aspects of the entertainment industry including each of the following segments.
A Sample of Our Entertainment Industry Experience
- Motion Picture Production and Distribution
- Merchandising & Licensing
- Publishing (Music, Electronic, and Paper)
Motion Picture Production and Distribution
- On multiple occasions, valued the different results that would have been achieved had films been completed and released as initially desired, when compared to what actually happened.
- Performed investigation, solvency analysis, and forensic accounting for a major motion picture studio in connection with a lawsuit. Appraised the value of the current slate, film library and minority interests in various foreign exhibition houses. Assisted attorneys in discovery and provided deposition testimony.
- Testified on behalf of one of the major entertainment companies in connection with the payout due to the former studio head. Included forecasting revenues for animated features and calculating operating income for certain products over a period of approximately 15 years.
- Provided bankruptcy consulting to a mid-level studio (including production and distribution) involving valuation of the assets, valuation of the film library, assistance with the sale of the company, evaluation of financial matters affecting the plan of reorganization, classification of claims and acceptance/rejection of contracts, resolution of all royalties, share and participation audits and financial evaluation of all significant claims and disputes.
- Valued all assets, subsidiaries and intangible assets in connection with a $600 million acquisition of one studio by another.
- On multiple occasions, analyzed cash flow projections, valued the film library and analyzed historical results of operations and financial position for a studio/owner.
- Performed valuation support for an independent motion picture studio. Prepared analyses on its film library and current slate of films in connection with a going private transaction.
- Analyzed the actions taken by a major studio in a home video release in response to allegations that the video was not handled in accordance with the distribution agreement. Analyzed potential damages.
- Assisted a large entertainment company in refuting a participant’s claim that the company had not appropriately calculated net profits in accordance with his agreement.
- Determined the value of a Hollywood movie production company and its related film libraries in connection with a marital dissolution.
- Analyzed the financial statements and underlying accounting principles used in connection with a merger of two major studios in which the amount received by both shareholder groups was dependent on financial statement results.
- Prepared a business valuation of an entertainment production company for transaction purposes. Company assets included completed film/participation rights, television rights and the rights to various scripts.
- Prepared a financial analysis of the economic impact of a national chain of movie theaters complying with Americans with Disabilities Act (ADA) implementations.
- Conducted a financial analysis of the costs and impact of converting a regional movie theater chain to new exhibition technology.
- Valuated a large independent producer and financier of feature firms. Included an assessment of (i) the transfer of intangible assets between related parties, and (ii) the purchase of stock interests over time.
- Determined the purchase price of a home video enterprise for a court appointed arbitrator assignment.
- On multiple occasions, valued a script or other idea prior to the project being green lighted; frequently related to a dispute over whether a script or idea has been stolen.
- Valued various film rights including DVD/home video, sequel and remake rights.
- Valued an entire company and film library in connection with a fairness opinion.
- Conducted numerous participation audits and assisted in related disputes on behalf of owners, talent and copyright holders.