Quantum Group realizes the fine line between buyer and seller portfolios. The buyer wants to maintain a successful portfolio for the future and must guarantee that profits will be realized. The seller–on the other hand–wants the highest premium possible for its assets and is indifferent toward the buyer. So how does Quantum Group allow the seller to obtain its premium while satisfying buyer portfolios?
One way Quantum accomplishes this goal is through the process of grouping and representing multiple assets from a given geographical area: “clustering.” This methodology adds significant value to certain transactions. Quantum merges a large group of individual tower assets that may normally achieve lower valuations and utilizes the size of the asset pool to create a higher return for independent assets.
Consider the buying of securities on margin. When buying on margin, an account is able to purchase more securities than possible than with a non-marginalized account. Quantum applies this same concept to the tower clustering model.
Instead of buying margins, though, Quantum sells clusters of towers. With a margin account, an investor can take one dollar of real money and use the marginal balance to acquire more stock. In the tower industry, Quantum can take one tower asset, pool it with other tower related assets, and achieve higher multiples for those assets.
The idea is simplistic in nature, but the benefits are profound. The seller receives benefits derived from economies of scale while the buyer receives instant cost savings compared with the historical or projected costs for similar acquisitions.
Quantum Group is tenacious when it comes to clustering. Our goal is to create a solid portfolio that is attractive to the buying market while satisfying our clients financial needs, and we’ve done this with enormous success. Quantum leverages clients assets on a contingent fee basis with no up-front costs to clients. Clustering has become an invaluable tool for the skilled professionals at Quantum, and we continue to utilize this strategy fifteen years from our beginning.