Broadcast Tower Purchase Offers and Valuation
In recent years, various tower companies and aggregators have been reaching out to tower owners with broadcast tower assets, making unsolicited offers to purchase the broadcast towers. The aggregators' goal is to build a portfolio of valuable towers that they acquired at below market rates by targeting uninformed tower owners. These potential buyers search through the FCC records to find the location and ownership of the broadcast towers. When the aggregators contact the broadcast tower owner, they offer to buy the tower while granting a "lease-back" for the long-term use of the tower by the broadcaster. In other words, the tower owner leases back space on the tower he once owned. As an attempt to sweeten the deal, the aggregator sometimes offers to increase the purchase price of the tower, but only if the lease-back payments are increased as well. In these inflated offers, the broadcaster is effectively borrowing money from the tower aggregator. While this may seem like an attractive option because of the increased lump sum at the beginning of the deal, it is essential that the broadcaster carefully examine the effective cost of that "loan".
Generally speaking, these aggregators make low offers because they know that the average broadcaster (especially those with only one or two towers) has limited expertise in tower valuation. Accordingly, if you have received an unsolicited offer to purchase your broadcast tower, 9 times out of 10, there is a better offer out there. That is where SITA steps in - we can help you determine the value of your tower(s) and discuss alternatives to the offer you have received. Because we offer a free initial consultation that includes a review your specific situation and general assessment of the value of your tower, the only thing you have to lose by calling us is a few minutes of your time. At worst, you will have a better idea of the value of your tower.
If you do choose to sell, our primary goal will be getting you the best offer in exchange for the least amount of concessions. We will protect the operational interest for your station(s) on the tower, specifically in the context of a well-executed lease-back arrangement. We understand the nuances of the broadcast tower asset class and know the companies who are eager to purchase them at the highest multiples. You don't have to enter blind negotiations with a tower aggregator who may have significantly greater experience in tower transactions than you do. You don't have to question whether the offer you received was the best that you could get; you will know for a fact it is once we have completed our assessment. If you need legal guidance during the transaction or additional help in setting up the auction process, our affiliate companies can help with that, as well. We encourage you to review our services and see which ones you need in order to get the best possible payout for your tower site.
Please contact us for a free and confidential initial consultation.