Telecommunication Company Valuation Services

Loud & clear

Global market forecasts for the telecommunications and related technology industries are painting a bullish portrait for the remainder of the decade.  Balance sheets are stronger.  Capital spending is steadily climbing.  And, markets for IP-based networking technologies continue to ring up sales.

We are optimistic about the future but sensitive to the reality that when viewed globally, the outlook for the industry varies.  Consolidation, an ever-evolving regulatory environment and falling prices will continue to challenge most market segments.  These realities will inevitably lead to change.

Where there is change, valuation issues arise.

American Appraisal is here for you.  Other valuation firms may claim to know your business.  We’ve actually lived it.  Our specialists are former telecom industry executives who understand the competitive, technological and regulatory issues you battle daily as you position your company for success.

We invite you to discover the American Appraisal difference.
 

What we do

We know telecommunications.  We have built business cases, struggled with funding issues, absorbed ourselves in technology issues and gained a full appreciation for the metrics that drive your industry.  Drawing on expertise from hundreds of projects, American Appraisal possesses the knowledge and experience to provide you with strategic guidance right out of the gate.

While we utilize a time-proven, consistent approach to data collection, we recognize that no two engagements are alike.  We work closely with Clients right from the start to customize a powerful procedural roadmap that promotes critical thinking: Questions are raised.  Potential issues are flagged early on.  Discussions ensue.  Problems are solved.  It’s a beautiful way to work.

American Appraisal provides expertise in all classifications of tangible and intangible assets.  Our portfolio of services focuses on four key competencies:
 

Valuation
What are the key inputs and considerations when valuing IRUs?  What are the steps to valuing wireless spectrum under the Greenfield and Auction methods?  How is the modeling approach utilized to value telecom’s tangible assets when other methods are unavailable?  To answer these and all of your related questions, we have assembled a team of telecom experts unrivalled in our profession.  Our reports have withstood scrutiny of the world’s most discerning regulatory, judicial and taxing authorities and are recognized worldwide by leading financial institutions.  Our valuation services include:

Financial reporting (IFRS and US GAAP)

• Purchase price allocation
• In connection with an acquisition (preferably pre-deal) to identify implications of fair value accounting for a proposed acquisition, and/or post-deal to provide an independent opinion on the fair value of the acquired assets and liabilities for financial reporting purposes
• Assisting with identification and value measurement of surplus assets

Fairness and solvency opinions

Share option valuation for share-based payments

Impairment reviews

Dispute resolution services

Bankruptcies and reorganizations

Business and project modeling

Asset-based financing

Tax related valuations

• Shares and options issued to executives for income tax purposes
• Restructuring and reorganizations of business units
• Intellectual property restructuring and portfolio management
• Transfer pricing – intangible assets
• Sale and leaseback

Property tax valuations and negotiations

Transaction Consulting
Competition is fierce. Economic pressures loom.  No matter what your line of business, a merger or acquisition, divestiture or financial restructuring may be in your future. Significant business transactions like these present challenges, risks and rewards.

We have provided Transaction Consulting to telecommunications companies involved in some of history’s largest transactions.  American Appraisal can help you minimize and manage the risk component.  Our objective analysis of property economics, market drivers and valuation will provide you with insights and guidance that is often difficult to obtain.  Services include:

• Due diligence
• Fairness and solvency opinions
• M&A valuation advisory
• Buy-side consulting
• Sales-side consulting
   

Fixed Asset Management
As many valuation firms have downsized their Fixed Asset Management capabilities, relying instead on other consulting staff and subcontractors, American Appraisal has continued to grow this area of expertise.  Today, we employ one of the world’s largest teams of Fixed Asset Consultants.  Services include:

• Insurable values for insurance placement, including provision of annual updates
• Advice on management of post-loss claims
• Valuations for asset-based financing
• Physical inventory and reconciliation of fixed asset accounting records
• Advice on fixed asset management and controls
• Guidance regarding SOX and IFRS compliant procedures
• Assisting with identification and value measurement of surplus assets
   

Real Estate Advisory
We are familiar with the types of real estate found in the telecom industry, and know how to value them, including:

• Network Operations Centers (NOCs)
• Central offices (COs)
• Hubs and similar small POPs
• Rights of way
• Owned and leased office space
• Customer service centers (orders, trouble, help, repairs, billing, information, emergency)
• Owned and leased wireless tower parcels
• Billing centers
• Internet peering points
• Data centers
• Satellite ground stations
• Vehicle maintenance and network parts storage facilities
• Favorable/unfavorable lease obligations

Why us?

If you’re contemplating the engagement of a valuation firm, ask yourself, which one brings the most experience to the table?  Who employs consultants who have actually worked in the industry?  Which one is willing to commit to help us get to where we need to be?  When you examine the realities, we think you will find there is only one answer . . . American Appraisal.

We know telecommunications
We have walked in your shoes. As former executives/managers of BellSouth, AT&T, Nortel, and PCCW (formerly Hong Kong Telecom) to name a few, our Consultants have a profound understanding of the challenges you face.  We have:

• performed hundreds of telecom valuations across virtually all segments over the past three years; and
• handled some of the largest and most challenging telecom valuations of the past decade.  We also possess extensive experience working with CLECs and RLECs.

We are independent
American Appraisal focuses exclusively on valuation and related solutions.  That independence guarantees our greater objectivity.

• This is our only business.
• We are independent of other attest, rating agency, investment banking or other conflicts.

We are experts
Breadth and depth of expertise eliminates the need to rely on subcontractors.  Our Consultants, who have been with us an average of more than ten years, have the experience necessary to value virtually any business interest, tangible or intangible asset.

• Focused on and committed to valuation since 1896
• Professional Chairmanships include the Appraisal Issues Task Force and the Appraisal Standards Board (the FASB of our profession)
• Unrivalled interaction with key valuation standard setting agencies ASA, FASB, IASB, IVSC, AITF and PCAOB
• Credentials include CPA, CFA, ASA, ABV, MAI, ASA and MBA
• Rounded exposure through working with “Big 4” audit/valuation teams as well as leading investment banks and P/E firms

We are focused on client needs
American Appraisal is employee owned.  We aren’t merely involved in valuation; we are unequivocally committed to meeting Client needs.

• Direct Client access to the Firm’s senior management

We are global
American Appraisal is comprised of 900 employees, operating from more than 50 offices strategically situated on four continents—Asia, Europe, and North and South America.