The best in the business
Patrick Communications is a leading brokerage and investment banking firm offering media, tower and telecom brokerage, investment banking, and valuations.
Over the last 25 years our principals have negotiated or appraised media transactions valued in excess of $8.5 billion.
Patrick Communications is also the nation’s top broker of non-commercial stations. No other media brokerage firm has sold more non-commercial stations. We have a unique understanding of the issues associated with marketing non-commercial stations that is unmatched.
Patrick Communications is highly regarded in both television and radio sales and offers fair market and asset appraisals that are the best in the business. If you are considering listing your station, or need an asset valuation, please contact us today for a consultation. Our reputation speaks for itself, but any of our past clients can testify for our expertise in representing them and we would be happy to provide a list of satisfied clients as references.
Patrick Communications brings years of broadcast and financial experience to the table. Click below to meet the members of our team.
Frequently Asked Questions
What methods do you use for a valuation of my radio or TV station?
There are several methods of valuing broadcast stations. These are the Multiple of Cash Flow, a Revenue Multiple, and Stick Value (based on a price paid per person in the coverage area). The vast majority of stations are valued based on an application of the multiple of trailing cash flow method. Factors that influence where a station is valued within this range include market size, the station’s type of technical facility, the economics and demographics of the market, the competition in the market, historical cash flow performance, capital needs of the station, operating margin, projections for future growth, and a variety of other factors. A Revenue multiple is used when revenues are at a normal level, but profitability is not where it should be resulting in lower than normal cash flow. Stick Value is used for non-commercial stations or stations with underperforming financial results. Value is based on applying a benchmark price per person covered in the signal coverage area.
What is due diligence?
Due diligence is the process of reviewing materials that are prepared by the Seller for the Buyer. These may include items such as descriptions of real estate, personnel lists, financial statements, contracts and leases, etc. These materials generally are attached to the contract for sale as Schedules.
How long does the sale process take?
Marketing the station can take from several weeks to several months depending on the property. Negotiating and drafting a contract for purchase and sale of a station can also take from several weeks to several months depending on the complexity of the deal. The FCC review and approval of the transfer usually take from 90-120 days.
What happens to my employees in a sale?
Technically, in an asset sale, employees are terminated by the Seller on the day of closing. The Buyer then has the option of re-hiring any or all of the employees that he or she may need. In actuality, most purchasers retain the vast majority of the current employees following a sale.
How do you protect confidentiality of my station sale?
It is our standard practice both to place any prospective purchaser under a Confidentiality Agreement before sharing sensitive information concerning a property being offered for sale. In addition, we are very careful not to reveal the particular property to a buyer until we have qualified them as to both their interest in the stations and their ability to close a transaction.
How do you qualify buyers?
We discuss with them their specific interests and their ability to fund a purchase. We focus on learning where both their equity and debt will come from to close the sale. In many cases, we will speak directly to their banker and investors to assure our clients that the purchaser is qualified.
Will a sale be held up during a license renewal period?
The FCC generally does not grant license transfers when the stations involved are in the midst of license renewal. A transfer may be delayed until the license renewal is granted. Buyers and Sellers often enter into a Time Brokerage Agreement to allow the Buyer to be operating the station and to allow the Seller to remove himself from daily operations as permitted by FCC regulations.