True if the business doesn't rely on real estate.  Many businesses can
operate no matter where they reside because they don't depend on location.
Fixed wireless certainly relies on location due to the inherent LOS issues.

There is additional value to businesses that have established ties to the
community, name recognition etc.  For example we purchased a retail
establishment primarily due to location and reputation.  The company had
been around more than 15 years before we purchased it.  The primary asset
was reputation.  Very little inventory and only a month to month lease on a
leaky building from which it operated.  We bought the name, reputation added
a little cash.  Over the next few years we purchased the land, built a new
building and were generating more than 12 times the revenue.

Ten years later someone walks in inquiring about purchasing the operation.
We say we're flattered, but sorry the company isn't for sale.  Again, we
were proven wrong and the company sold.  This occurred because the buyer was
more motivated than the seller.

This type of sale occurs every day.  Whether it's real estate property or a
profitable company with assets not easily duplicated.

Best,

Brad


-----Original Message-----
From: [EMAIL PROTECTED] [mailto:[EMAIL PROTECTED] On
Behalf Of Matt Liotta
Sent: Thursday, December 07, 2006 7:23 PM
To: WISPA General List
Subject: Re: [WISPA] One method to calculate a fair Multiple for Evaluation

Brad Belton wrote:
> We've owned property that simply wasn't for sale...we were proven wrong.
At
> the right price anything is for sale!
>
>   
That is the great thing about real estate; location matters. In other 
industries, it is easy enough just go around if the business isn't for 
sale. We have now deployed in several markets that had existing players 
that weren't interested in a deal. Since we wanted to be in the market 
and the existing player wasn't interested we had no choice. In the case 
of real estate, we would have just been out of luck.

-Matt

-- 
WISPA Wireless List: wireless@wispa.org

Subscribe/Unsubscribe:
http://lists.wispa.org/mailman/listinfo/wireless

Archives: http://lists.wispa.org/pipermail/wireless/

--
WISPA Wireless List: wireless@wispa.org

Subscribe/Unsubscribe:
http://lists.wispa.org/mailman/listinfo/wireless

Archives: http://lists.wispa.org/pipermail/wireless/

Reply via email to