Radio station financing from banks has been rare, especially for small and medium stations and companies, since the major financial institution "meltdown" more than a decade ago. Most financing in recent years has come from group owners with good banking relationships and accessible capital and from seller financing. This has prevented the entry into broadcast ownership by many qualified persons without the necessary financial backing.
Under current US government regulations for financial institutions, banks are basically restricted to “asset based” loans with minimal consideration of the borrower’s operating income. For this reason, it is essential for a borrower to include a professionally prepared Fair Market Valuation in the loan request documents. The report must be comprehensive and each assumption or conclusion must be backed up by credible research and documentation.
As an additional service to a valuation, CGCO can prepare, or assist in preparing, a complete Business Plan. Our experience in owning and operating radio stations and in years of Investment Banking service could prove invaluable in the financing process.