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TD Waterhouse Group Inc.

A Definite Solution to Doubtful Accounts

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The Challenge

When ICON met with the country’s largest online financial services provider, it was in the midst of addressing a portfolio of uncollected consumer debt. Customers had lost money in the stock market’s now-legendary dot-com meltdown, and the crippled cash flow put an otherwise successful business unit at risk. As the firm was taking steps to address these challenges, the tragedy of 9/11 occurred. The offices were located only blocks from the World Trade Center. Prospects for timely collections all but vanished.

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How ICON Uncovered Value

After a rigorous due diligence process, ICON purchased several million-dollars of doubtful accounts at full assessed value with cash. In return, TD Waterhouse (TDW) committed to placing a prescribed amount of its annual media budget through ICON over a four-year period. Did it work? “We couldn’t have asked for better results,” said one TDW senior executive, "There was not one issue I can think of, not one, from beginning to end."

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The Results

As the first transaction began to wind down, TDW’s marketing department reached out to ICON with another challenge. Following a change in strategy, the company’s naming rights to the Orlando Center, home of the NBA Orlando Magic, had become less attractive. Still, the rights included local street names and other amenities too valuable to lose. Rather than remarket that property to a new owner, ICON fully funded TDW’s naming obligation through the contract period in exchange for trade credit.

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