Valuations

Henson Media, Inc. has a long history of undertaking broadcast valuations, having done numerous broadcast valuations for radio, television, and low power television stations. These valuations have been used for a variety of purposes, including by financial institutions to determine the value of security; by sellers and buyers to determine the price of a station; in divorce settlements; and by partners wishing to buy out other shareholders and desiring to place an accurate value on the stock. Sometimes an owner may just want to know what their station is worth.

In doing a valuation, Henson Media uses several different approaches. Usually the valuation begins with a description and background of the station. Then a financial analysis is undertaken, looking at the station’s sales and profit levels and appropriate multiples are applied, as well as a rate of return analysis. After that, there’s usually a review of comparable sales and an analysis of the stations’s assets. Adjustments are made based on the economic vitality of the station’s market, the level of media competition and other factors.

After this analysis, there’s a summary section and the statement of value. Usually an extensive valuation report is prepared and given to the client.

 
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EDitorial Comment:

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