The process follows these steps:

1. FREE INITIAL CONSULTATION

2. REVIEW OF TOWER ASSETS

The process begins with SteelTree’s comprehensive review of the subject tower or portfolio of towers. SteelTree reviews each particular tower and on larger portfolios will often physically visit the towers to truly understand the unique characteristics of the portfolio.

3. CREATION OF A CONFIDENTIAL OFFERING MEMORANDUM

SteelTree works with the seller to gather the data that buyers will want to see. Having bought and sold towers previously, the principals of SteelTree are familiar with those factors that buyers need to know to provide a qualified offer. The offering memorandum will identify the positive and negative aspects of the portfolio so as to credibly illuminate the unique factors that contribute to higher value.

4. DISTRIBUTION OF THE OFFERING MEMORANDUM TO QUALIFIED BUYERS

The typical tower seller may choose to contact the public tower companies and request an unsolicited offer. They incorrectly assume that the values they will receive in a private inquiry without any competition among the known buyers will be the highest values achievable in the market. This can be a big mistake as buyers tend to value assets in dramatically different ways depending on motivations at the time. For example, some buyers like growth portfolios while others prefer purchasing mature cash flow assets. Some prefer cellular towers while others prefer broadcast towers. Some buyers forecast aggressive lease-up and are therefore willing to pay a premium while others are more conservative. The key to selling a tower asset or assets is to understand the specific tower(s) and to know which buyers will be most attracted to the tower(s).

5. CLOSED AUCTION

SteelTree has found through experience that there is no reason to divulge an "ask" price with the offering memorandum; in doing so the potential value will be undercut every time. Instead, SteelTree solicits bids from potential buyers in a competitive closed auction process which may be taken through several rounds. (Closed in that the potential buyers are a pre-qualified pool of known purchasers of the given assets class.) SteelTree requires that all participants submit their non-binding offers by way of a letter of intent which details the desired transactional terms as well as the method of payment.

6. REVIEW OF FIRST ROUND RESULTS WITH SELLER

Upon receipt of the initial bids, SteelTree provides the seller with a matrix showing the offer terms for each of the various respondents to the blind auction. The matrix includes the amount offer as well as intangibles about the various sellers. The highest offer is not always the best offer and SteelTree uses the matrix to illuminate the differences between the offers.

7. REQUEST FOR UPDATED OFFERS

SteelTree assists the seller with determining the top group of offers and then schedules conference calls with those contenders. The purpose of the conference call is two fold:

(1) the seller has the opportunity to build credibility with the buyers and answer questions; and

(2) the buyers can describe their methods in doing a transaction.

Buyers are then asked to submit their final and best offers knowing that others are also interested in winning the opportunity to purchase the assets.

8. DECISION TIME

Typically, there is one offer that rises above the others. If not, then SteelTree will provide historical data about the various parties. How easy were they to work with on previous deals? When the inevitable issue arises that wasn’t contemplated, how willing was that buyer to work around it? After the seller asks any questions they might have, they make a decision on which buyer to move forward with. SteelTree will review the letter of intent and recommend legal counsel to assist the seller if the seller’s legal counsel isn’t familiar with tower sales.

9. PURCHASE AGREEMENT

Unlike other tower sell side M&A advisors, SteelTree doesn’t stop working when it comes time to finalize the purchase and sale agreement. Having worked with all of the buyers before, SteelTree is familiar with where they have latitude to change the agreement language and where they don’t. SteelTree will work with your legal counsel and advise you on how to get the agreement to a point where both buyer and seller can live with it.

10. CLOSING

Typically, the above process takes about 2-3 months depending upon the size of the transaction and the completeness (or lack thereof) of the seller’s documentation and due diligence.