The Basis for Your Decisions

Frequently Asked Questions

Who retains Bond & Pecaro?

Bond & Pecaro works with a diverse set of clients in the communications, media, and technology sectors. Both large and small companies retain our services on a wide variety of financial, strategic, and valuation matters.

Buyers and sellers of companies may require our services for financial reporting and tax requirements. Quite often, we are retained directly by the chief financial officer, tax director, or controller of a company.

Bond & Pecaro’s services are also secured through a client’s law firm, accounting firm, or financial advisor.

What services do you provide, and what makes you qualified to perform these services?

Bond & Pecaro provides financial, valuation, and strategic consulting services to the radio, television, cable television, media, wireless, technology, and publishing industries.  These services include purchase price allocations, fair market valuations, ASC 350 and ASC 360 (formerly FAS 142 and 144) asset impairment analysis, inventory asset tagging, insurance valuations, strategic plans, property tax consulting, and expert testimony. 

The professional staff of Bond & Pecaro has been retained to appraise more than 5,000 technology and media properties, including broadcasting, cable, publishing, telecommunications, and technology businesses. Members of the firm have extensive experience in the areas of market research, valuation related tax matters, financial and economic analysis, demand forecasting, strategic consulting, communications engineering, acquisition evaluation, and litigation support. Members of the staff testify routinely as expert witnesses on economic issues related to broadcasting companies and their assets. Senior members of our staff have approximately 25 years of professional experience in finance, economics, and telecommunications engineering, which enables the firm to respond to a wide variety of client needs.  

What valuation methods does Bond & Pecaro rely upon in a fair market valuation?

Bond & Pecaro relies upon the three major approaches to valuation: the income, market, and cost approaches.

The income approach measures the expected economic benefits (obligations) which a business or asset (liability) brings to its holder. The fair market value of a business, asset, or liability may be expressed by discounting these future benefits.

The market approach analyzes the prices for which comparable businesses or assets (liabilities) have been recently traded in markets with size, growth, and competitive characteristics comparable to the subject in order to determine the fair market value of the enterprise or asset (liability).

A valuation using the cost approach measures the worth of a business or asset (liability) through the summation of the costs necessary to replace or replicate the company or to place an asset (liability) in service, with allowances for physical, functional, and economic depreciation taken into account.

What is an ASC 350 analysis and how is it performed?

An ASC 350 (formerly FAS 142) analysis determines whether the goodwill and other intangible assets of the property have been impaired. Impairment is indicated when the carrying amount of an asset on a company's balance sheet exceeds its fair value. ASC 350 requires that goodwill and intangible assets that have indefinite useful lives will not be amortized but rather will be tested at least annually for impairment. Bond & Pecaro assists its clients in meeting the impairment testing requirements of ASC 350 and prepares reports stating our findings regarding a company’s intangible assets and goodwill.  

The assessment of impairment is based upon a two-step process. The first step requires an analysis of the current Fair Value of a reporting unit versus its total Carrying Value (net book value). If the Fair Value exceeds the Carrying Value, no impairment must be recognized.  If there appears to be impairment at any reporting unit, ASC 350 requires that a second step be taken to assess the new value for Goodwill.

To conduct the first step required under the impairment testing of ASC 350, Bond & Pecaro anticipates relying primarily on the discounted cash flow (DCF) method of valuation. To confirm the results of the DCF approach, we would typically conduct both an analysis of comparable sales transactions and apply cash flow multiples based on prevailing industry trends, as well as prepare an analysis of current valuation multiples for public companies with comparable holdings. These methods will be applied to both operating businesses and to start-up, or “stick”, stations. In certain cases, use of the DCF method may not be appropriate, especially in the case of sticks in undeveloped markets. In these instances, we may rely primarily upon an analysis of comparable sales to determine fair value.

What is the purpose of an independent valuation?

Independent valuations of companies, their assets, and existing liabilities are often required in conjunction with the sale of a business.  In addition, the valuations are used for estate purposes, bankruptcies, accounting and tax audits, and to meet certain regulations for the Security and Exchange Commission, Financial Accounting Standards Board, and the Internal Revenue Service.

Asset appraisals are used for many purposes. The buyer of a property typically uses an asset appraisal to determine the purchase price of the tangible and intangible assets of the acquired business. In the case where a purchase price has been agreed upon between a buyer and seller, an asset appraisal is performed to allocate the purchase price among the various tangible and intangible assets. An independent third-party may be required for tax and financial reporting purposes.

Independent valuations also are used to establish the fair value of an enterprise. This valuation is provided for purchase agreements, financing requirements, employee incentive programs, business plans, and estate planning and tax purposes.

What does a typical report cost?

The cost of a report or project will vary based upon the complexity of the engagement. We prepare an estimate for the project based upon the time required to complete the project and our experience with similar valuations. Certain additional work, such as time spent by Bond & Pecaro staff responding to auditor questions, is typically based upon the hourly rate of the professionals involved in the project.

Related out-of-pocket expenses, such as airfare, hotels, local land appraiser fees, research fees, long distance telephone calls, duplication, and express delivery charges are billed separately, at cost.

How long does it take to complete a project?

The time required to deliver a draft report also depends upon the complexity or specialized nature of the project. A letter report to determine a company’s fair market value will usually take 2-3 weeks to deliver. An asset appraisal will often take 4 weeks or more from the time of the visit, depending on how many properties or markets are involved. The firm understands that many of its clients are subject to unanticipated deadlines and can accelerate delivery dates if necessary. 

Does Bond & Pecaro sell any research materials or publications?

The firm publishes an annual research publication: The Television Industry: Market by Market Review, a joint venture with the National Association of Broadcasters (NAB). Please refer to for further information about this publication.