The determination of the economic value of a cellular, cable television, broadcast, fixed wireless or mobile communications property in today’s marketplace.

Today, accurate, defensible fair market valuations are essential for business, litigation, tax and financial reporting purposes. Standards based valuation assessments, following guidelines set by the American Society of Appraisers (ASA), by the American Institute of Certified Public Accountants (AICPA) and by the Financial Accounting Standards Board (FASB) are critical in order to withstand scrutiny by auditors, Revenue Service agents or by owners and investors. In the current business environment, the “price-per-pop”, “multiple-of-EBITDA” or other shorthand method of valuing a communications property is simply not acceptable to auditors, financiers, investors or buyers.

Our valuation techniques have set a standard for communications company business valuations which have been successfully tested in litigation proceedings and Revenue Service audits. Our valuations apply, as appropriate, Cost, Income or Market based valuation techniques. Our Income approach valuation techniques assess the expected financial return which can be generated by a property over a normal investment period. We analyze the historical income statements and operating performance of a company in order to support the projections we make for future subscriber penetration levels, churn rates, operating profit margins, capital costs and customer revenues.

We also perform a thorough analysis of the market including the economic growth and competition within a market. Our valuation reports determine a property’s underlying collateral value and can be used to determine its ability to service debt. Our experience after hundreds of valuation reports, indicates that a communications property’s cash flow and expected resale value provide an important indication of fair market value.