FAIR MARKET VALUATION SERVICES
We prepare valuation reports with two formats:
- Basic Complete Valuation Report
- Stick Value Report
The basic difference is whether the subject property has significant operating income or not.
These two methods are described below:
Basic Complete Valuation
For stations with adequate positive cash flow, the best and most accurate Fair Market Value (FMV) is determined by using a combination of industry accepted methods:
- Comparable Station Sales
- Multiple of Current Operating Income (Cash Flow)
- Multiple of Gross Revenue
- Population Covered by Station Contour (POPS)
All of our comparable sales studies are derived from actual regional station sales during a five year period in markets with similar characteristics. This gives a much more accurate comparison than national numbers.
The normal fee for this report is $2,000, but can vary with the complexity of the assignment.
Basic Valuation Logo
Stick Value Reports
A Stick Value Report can be prepared without contact with the station owner for information. We primarily base the valuation on the actual sales of other regional, similar properties and then compare it with the current national multiple.
Our Stick Value Report is a good tool to use when you are contemplating an acquisition, particularly of a non-performing property.
For radio stations with little or no cash flow or operating income, a commonly accepted valuation method is Stick Value.
Stick valuation is based on the Population Covered by the station (POPS). In our stick value reports we develop a regional multiple based on actual recent similar station sales for the surrounding states. We then compare it with current national multiples.
The Stick Value FMV report will provide an accurate value for any radio station without significant cash flow.
Our fee for the report is $750, and the report can typically be delivered in two days. Additional stations for the same owner, prepared at the same time, are $500 each. The fee will include a telephone review to answer any questions.
Stick Value Report Contents:
- Station and market description, including the population covered by the station's contours.
- Stick Value FMV Calculation based on all recent actual regional station sales for the subjec state, and each surrounding state.
- Stick Value FMV Calculation based on current national broadcast standards and multiple.
Please email or call with any questions, and complete the Order Form on the next page and submit it to us.