A SQUARE :: 10May07 Expertise on investing in entertainment backed assets
Financial Engineering &Re-engineering
The entertainment sector is perceived to have higher risk because of the many “unknowns” on how profits are generated. The industry has always looked at profit from a pre and post tax standpoint which by its nature makes the financing risks more unclear for an outsider. Furthermore, some of the perceived risk stems from the fact that cash flows in the entertainment sector are not as linear as they are in other industries.