That all depends on the underlying ground lease. If there are terms associated with the lease then they can be considered a liability even after you take the tower down. One could also consider the tower a possible a possible commercial real estate venture if it's has any other tenants and/or if it has ability to take on more tower load in the form of other paying tenants. The tenant potential depends a lot on the market need. WISP towers typically are in rural areas with low wireless demand for other technologies so the reality is the commercial real estate value is low. Depending on the zoning regulations in an area though the value could be high, meaning that an existing tower may have more value even if it has to be rebuilt based on the fact that it has an existing zoning approval. IF zoning regulations are not that strict, it's value is little to none because it would be cheaper and easier for a tenant to build one that already meets their loading needs than to rebuild yours.
Short answer to the enhanced value to the business is "it depends". The list of factors I have listed are but a few. As others have mentioned the take down value it little to nothing especially looking at the expense of the take down itself, and of course then if the tower isn't there how the heck would you have any customers for which they just paid you for? The rule of the valuation at say 1.5 has typically factored in all things like OPEX and towers and office space, vehicles etc. Y can't just try to single out one aspect of the business and say it is worth "x" when they have already created a valuation. I get trying to bump up the value of the business trying to pump up the perceived value of various aspects, but the concept of the take down value of an operating wireless company of a tower seems the wrong way to call out some of those extra values. A tower with other rent paying customers is a totally different animal though. Thank you, Brian Webster www.wirelessmapping.com From: AF [mailto:af-boun...@af.afmug.com] On Behalf Of CBB - Jay Fuller Sent: Monday, January 6, 2020 10:55 AM To: AnimalFarm Microwave Users Group Cc: memb...@wispa.org Subject: Re: [AFMUG] Company Valuation guess i am amazed by these responses but this is why i asked. i argued the towers can be taken down and the steel sold and they can be converted to cash, therefore, they have more value. maybe not.... ----- Original Message ----- From: Jesse DuPont <mailto:jesse.dup...@celeritycorp.net> To: AnimalFarm Microwave Users Group <mailto:af@af.afmug.com> Cc: memb...@wispa.org Sent: Monday, January 6, 2020 9:48 AM Subject: Re: [AFMUG] Company Valuation My 1.7 cents worth - perhaps even less - of an opinion is "maybe," but generally, no. The amount of cash you'd get out of taking down the towers doesn't seem to be anywhere near their replacement value by the time you take into account deconstruction in a reusable way. Besides, the revenue the business generates is 100% dependent on them (if you're wireless only). In the end, the revenue the business generates today, with all past expenses, is the revenue. In other words, whether you have $3.6M in towers or $600K in towers is kind of irrelevant because the revenue is what it is. Even if you had a significant income from tower rent to other lessors, that income is still part of you revenue. There might be a limited argument that if you also owned the land they're on, there is additional worth there because it's real property, but unless that property were in a high value location, its value is still only related to the revenue it generates. Jesse DuPont Network Architect email: jesse.dup...@celeritycorp.net Celerity Networks LLC Celerity Broadband LLC Like us! facebook.com/celeritynetworksllc Like us! facebook.com/celeritybroadband <file:///\\Users\jessedupont\Google%20Drive%20File%20Stream\My%20Drive\Celer ity%20Broadband%20LLC\Marketing\Celerity%20Broadband%20Final__04.12.2015\Sou rce%20Files\Celerity%20Broadband_cv-sig.png> On 1/6/20 8:07 AM, CBB - Jay Fuller wrote: Lets say for easy math purposes you bill approximately 1.5 million annually. I've heard 1.5 times annual revenue thrown around for a valuation purpose. There is a lot more to this figure but it's a place to start. So, if your company billed 1.5 million, you'd say your valuation was around $2.25 million. If you had 90 towers on your network - and you owned 60 of them (the steel, not the land they're on) , would you consider your network worth more than if you rented all 90? My take on this is yes, they could all be taken down and converted to cash, so the fact we own towers vs. rent them makes our network more valuable. What say you? Thanks. _____ -- AF mailing list AF@af.afmug.com http://af.afmug.com/mailman/listinfo/af_af.afmug.com
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