- The Landscape: Chuck Road And Sibling Ownership
- Sibling Alignment From Experience
- Competing On Value: Symphony's Differentiator
Symphony Wireless, renowned for its expertise in navigating the complexities of wireless infrastructure transactions, recently achieved a significant milestone with the acquisition of the US Cellular tower at Chuck Road in Wisconsin. This case study unravels the details of Symphony’s success, highlighting strategic negotiation, competitive positioning, and the factors that set Symphony apart in a competitive landscape.
The Landscape: Chuck Road and Sibling Ownership
Chuck Road presented a unique opportunity for Symphony Wireless. The tower was owned jointly by four siblings in Wisconsin. The dynamics of sibling ownership added a layer of complexity to the transaction, requiring Symphony to navigate multiple perspectives and align the interests of each party involved. The siblings were aligned to sell but split on how to achieve maximum value. Many players were vying for the asset, each representing different positions of value.
The equity of this deal was the real deciding factor, as there were four siblings involved who all had an equal stake in the asset, with four different opinions. Two of the siblings wanted as much cash upfront as possible, one sibling didn’t want to sell as they were accustomed to the monthly payments, and the fourth shared that opinion but wanted to explore short- and long-term value now.
Sibling Alignment from Experience
The success at Chuck Road can be attributed to Symphony’s adept handling of sibling dynamics and its ability to align the interests of all parties involved. First Symphony needed to be the top offer, then they needed to display the value over time to the parties involved.
To do this, Symphony raised its offering over 80K to cement itself as the top offer in the market. Then it sought to meet all four siblings’ needs:
- For the first two siblings who just wanted to sell, they would get 25% of the buyout offer in a lump sum agreement after the purchase is final.
- For the third sibling who wanted to stay with the monthly payments, the 25% allocation for them was broken into 5 payments across 5 years; supplementing the monthly payments across the short term while this sibling adjusted to the new path.
- The fourth sibling was the one who helped put this all together. He clearly understood Symphony’s differentiator; their focus on growing the asset over time and how this would funnel into the siblings’ pockets with no effort of their own.
Competing on Value: Symphony's Differentiator
Beyond the signing bonus, Symphony Wireless differentiated itself by emphasizing its commitment to maximizing value for the siblings. The company’s approach went beyond a mere transaction; it underscored Symphony’s commitment to its partners’ long-term success and satisfaction. Namely, expanding the value of the asset by adding it to its sizable portfolio and using industry connections to find more tenants. All of this ties into a revenue share agreement at the point of sale, thus creating the long- and short-term value that so many site owners seek in these types of transactions.
The foregoing case study has been fictionalized in certain respects to protect the identities of the parties. Past performance is not indicative of future results. Symphony Wireless does not provide tax, accounting of estate planning advice. Interested parties are encouraged to consult your own legal and tax advisors.
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