This would be multiplied by a multiplier. For ease of the example, suppose that the multiple in this case is 20 times the annual TCF – that equates to a tower valuation of $400,000 or 20 (multiplier) times the TCF of $20,000. In other words, this particular tower is worth $400,000.
Simple so far – right? You should likely be asking yourself how the multiple of cash flow is therefore determined. This is where things get complicated. The multiplier is determined by examining a number of factors.
|TOWER CASH FLOW|
|INCOME – EXPENSES||$20,000|
|TCF Times Multiplier:||$400,000|
What are the coverage objectives of the tower? Is the tower primarily in a rural/suburban/urban area?
If you are interested in learning more about what buyers in 2019 look for when purchasing towers – see this list put out by SteelTree Partners LLC on their blog.
Using our proprietary cell tower sales database, we will provide you with a fair market valuation of your wireless asset portfolio. We will consider a comprehensive list of fixed and variable factors, including your tower’s current values vs. projected full capacity values, as well as expenses and revenue flow. We can be retained (for a fee) to provide a written letter of opinion on the value of you or your client’s towers. If you would like a redacted sample of a tower valuation, please ask.
On your behalf, we will conduct an analysis of any prospective acquisitions or new builds, using our proprietary cell tower location database.
Should you decide to sell, we will advise you on how to favorably position yourself. We can broker the towers on your behalf through an auction process that will assure you that you have received the best price and best terms for the sale of your tower assets. If you own a cell tower(s) (meaning that you actually own the steel) and are curious about its/their value, please contact us for a free cell tower valuation. We will need copies of your leases on the tower(s) with the wireless carriers.
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