We re Listening. Valuation and related services for Telecommunications companies. Valuation. Transaction Consulting. Real Estate Advisory

Transcription

1 Valuation Transaction Consulting Real Estate Advisory Fixed Asset Management We re Listening. Valuation and related services for Telecommunications companies

2 For what it s worth... Due to increasing demand for wireless and data communication services, availability of new applications and technologies, as well as rapidly expanding Asian markets, the telecommunications industry is expected to grow at a compound annual rate of just over 10%, thereby approaching revenues of US $4.30 trillion in the 2009 to 2010 time frame. TIA s 2006 Telecommunications Market Review and Forecast Published by Telecommunications Industry Association, Arlington, VA. Used by permission. 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. Page 1

3 Telecommunications and Information Technology segments served: Landline, wireless, CATV, internet & satellite service providers Fiber optics, cable, copper & connectivity product manufacturers Equipment manufacturers Technology manufacturers Software developers Telecom construction Outsourced telecom services 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 Page 3

4 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 Page 5

5 Many thanks to the team at American Appraisal for their expertise on valuation issues and the ability to quickly understand our business and the key drivers. We continue to appreciate the insightful consulting advice we receive from your team, and the commitment to meeting our needs on a timely and personalized basis. We look forward to working with your firm in the future. Akihiro Fukunaga Senior Vice President, Chief Financial Officer Optical Fiber Solutions, a Furukawa Company 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 Page 7

6 It was a pleasure working with American Appraisal for our company s valuation needs. Throughout the entire process, the team was professional, helpful, and extremely knowledgeable. American Appraisal s expertise allowed us to meet the tight deadlines of the project, as well as to work more efficiently with our external auditors. Cincinnati Bell was extremely satisfied with the valuation work and would not hesitate to recommend or use the services of American Appraisal again. Amy F. Kappen Controller - Cincinnati Bell Wireless Cincinnati Bell Our experience We are global. American Appraisal is comprised of over 900 employees, operating from more than 50 offices strategically situated on four continents Asia, Europe, North and South America. American Appraisal performs approximately 200 telecom/technology valuation projects across all market segments each year. 360 Networks 3Com Corporation Alibaba.com Limited American Fiber Systems American Tower Corporation Andrew Corporation Bezeq/Pelophone Blue Coat Systems British Telecommunications Broadview Networks C-Cor.net Corporation CenturyTel, Inc. Charter Communications China.com Inc Cincinnati Bell Wireless Cox Communications Degi Germany EchoStar Communications Embarq Corp. Ericsson, Inc. FairPoint Communications First Communications, LLC Geneseo Communications Global Crossing Limited Grande Communications Harris Corp. Intelsat Ltd. Knology, Inc. Level 3 Communications Motricity Nortel Networks O2 (UK) Limited OAO Enifcom One Communications PCCW Limited Qualcomm Incorporated Qwest Communications Raritan Computer Rogers Corporation Telefonica Moviles Time Warner Telecom Verizon Wireless Vishay Intertechnology Vodafone Wind Telecommunications S.p.A and growing. Page 9

7 Call us If depth of telecommunications experience and breadth of resources are critical to your valuation and advisory needs, think American Appraisal. It s the right call To learn more about us, visit our website at: