We offer a number of services at the corporate level. Please choose an area above for more details on how CRP Associates can help you.
FEASIBILITY STUDY & BUSINESS EVALUATION
This is CRP’s complete due diligence report for investor groups and financial institutions. It is designed to provide the principal with a sound background against which the company can confidently make prudent policy decisions in regards to the purchase and future operations of the station or cluster.
The study first evaluates the market with a complete analysis of the metro. Then each functioning area of the station or cluster will be evaluated; technical, programming, sales and administrative areas will be covered. The evaluation will include a look into the past, which will be based on prior budget figures and historical information.
Second, an assessment of each functioning area will determine the current status of these areas in order to produce a clear picture of the operating parts as they are today and to diagnose the causes and effects of any problems discovered. Specific recommendations will then be provided to assist you in making a decision. A separate report on the corporate will include an evaluation on the economic viability of purchasing and operating the properties under the proposed terms of the sale and financing available. A five-year cash flow projection for the station or cluster will be calculated and from that a fair market valuation will be conducted showing the current fair market value of the station or cluster along with the potential value five years out.
Implicit within the final evaluations, recommendations, and plan is the premise on which to base estimates of the time required to recapture the original capital investment, and to establish a future potential market value for the properties in relation to its tangible assets and its revenue/profit generating capabilities. A concise and complete executive summary is then developed for quick read of the proposed investment. The project includes a one-week on-site market visit. CRP’s Feasibility Study and Business Evaluation is the ultimate business plan for communication companies.
When things seem to be stuck in second gear, it’s time for a check-up. CRP’s Operational Analysis is the best diagnostic examination for sluggish or non-productive station operations. We look at each operating part of the station: Technical, Programming, Sales and G&A. We interview, review and renew your operations with cost cutting ideas, ways to generate new revenues and ways to get people to work together so you can move ahead. We help you focus and get back on track.
A set of recommendations will be presented for each operating part of the station that you can use as a guideline. As a result, a clear plan for your company is developed, as well as an awareness of how to better monitor future performance. Finally, duplicated or unnecessary effort is discovered and eliminated.
FAIR MARKET VALUATION
The Fair Market Valuation of a broadcast property establishes the cash price that would be paid by a fully informed buyer to a fully informed seller, provided that neither party is under any compulsion to buy or sell. Since the buyer of broadcast properties is primarily concerned with his or her return on investment, CRP employs a valuation technique based on the property’s potential earnings, discounted to present value, and which considers the probable appreciation in the value of the assets.
Typically, in addition to this economic approach to valuation, a second, confirming valuation technique used is a comparison of the value with recent sales of similar stations in similar markets.
The Internal Control Evaluation is a report which reviews and analyzes past and current methods and measures adopted by a broadcast company. The Evaluation is used to safeguard a company’s assets, check the accuracy and reliability of its accounting data, promote operational efficiency and encourage adherence to prescribed managerial policies.
The Internal Control Evaluation reviews the organizational structure of the operation. Then all of its Policies and Procedures will be reviewed, including office systems, compensation programs, credit and collection, traffic and billing and trade and barter systems. Additionally, all accounting and associated records will be reviewed for the past three years.
The FCC and state and federal courts recognize CRP as an authority and qualified expert witness in the broadcast industry.
MERGERS AND ACQUISITIONS
When you’re urging to merge or buying a new set of facilities it can be a very fast paced time. You need senior, mezzanine & equity financing for your project. CRP has relationships with numerous lenders and venture groups interested in the broadcast and internet industry. Additionally, the last thing you want is to miss a critical word or line in your asset purchase agreement that could cost you thousands. Bank loan documents and the associated covenants that come with them can be confusing and difficult to comprehend in the short period of time prior to closing. CRP will review these documents and work with you and your attorney to assure the best deal on both fronts. This isn’t a substitute for your review but a way to make sure you have the piece of mind that comes with having a well-crafted set of documents.