In recent years, tower companies and lease buyout companies have been reaching out to tower owners who own broadcast tower assets, making unsolicited purchase offers. Their goal is to aggregate towers into a portfolio of cellular assets by buying them at below-market rate from uninformed tower owners. These aggregators search through FCC records to find location and ownership data. They offer broadcast tower owners a “lease-back” for allowing the broadcast tower owner “long-term usage,” which allows the tower owner the rights to lease back space on the tower he or she once owned. In 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. At the end of the day, these arrangements mean that the tower owner is effectively borrowing money from the tower aggregator. While this may seem like an attractive option because of the initial lump sum payment, it is essential that the tower owner carefully examine the effective cost of the “loan.” Generally speaking, these aggregators make low offers because they know that the average tower owner (especially those with only one or two towers) has limited expertise in tower valuation.
If you are a tower owner who has 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 even facilitate a closed bidding process to ensure that you receive the maximum value for your assets.
If you do choose to sell, our primary goal will be getting you the best offer in exchange for the least number 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 – if that’s the route you choose to go. 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 into 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 – once we’ve completed our assessment, you’ll have total peace of mind.
Please contact us for a free and confidential initial consultation.