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Case Studies

A few examples of client projects Summit Ridge Group has worked on are listed below
Transaction Support & Opinions

Client Challenges

Client (OneWeb) was facing possible Chapter 11 and wanted to best position itself for continuing to operate as a going concern. Significant uncertainty due to absence of comparable sales data or data showing cash flows from comparable assets.

SRG Solutions

SRG valued OneWeb’s non-geostationary orbital authorizations. Deliverable was intended for use by potential investors.

Results

OneWeb successfully solicited multiple bids during the bankruptcy process. Company emerged as a going concern with investments from Bharti and Her Majesty’s Government (UK).

Client Challenges

Clients given small window for responding to unexpected offers to acquire their EBS spectrum licenses.

SRG Solutions

SRG completed a detailed analysis of the EBS landscape, including comparable transactions, spectrum demand, and new FCC regulations.

Results

Clients received detailed valuation reports that allowed for informed response to purchase offers. Clients’ legal advisors have highly recommended us to other clients for matters including, but not limited to EBS licenses.

Litigation Support, Expert Witness Services & Restructuring

Client Challenges

Orbital ATK (SRG client) was in a failed partnership with smaller entity to provide orbital satellite services. Plaintiff sued Orbital ATK for damages of more than $1 billion due to breach of contract.

SRG Solutions

As expert witness for damages, SRG completed a detailed analysis showing the partnership’s business was not viable. SRG testified in trial and identified errors in opposing expert’s damages analysis that inflated the the failed partnership’s value to more than $1.4 billion.

Results

Jury concluded damages of $0 against client Orbital ATK.

Client Challenges

Shentel (SRG client), a rural mobile carrier, was in a dispute over roaming voice and data usage. The dispute involved a contention regarding incorrect billing for the roaming voice and data minutes. A mobile industry expert witness was needed.

SRG Solutions

SRG expert worked closely with the client’s legal team through discovery and explained the cause of the billing discrepancies. The Summit Ridge expert witness also testified in arbitration regarding the complex roaming data issues.

Results

SRG’s client prevailed over the opposing party on all issues including rights to roaming charges of $18 million per year for three years.

Valuation Advisory Services

Client Challenges

Client, a minority partner in a territory franchise controlled by a major wireless operator, required a valuation to comply with IRS estate tax filings.

SRG Solutions

SRG leveraged its nuanced understanding of industry dynamics to promptly provide a detailed business valuation with complex variables.

Results

SRG provided a detailed USPAP compliant valuation and was able to quickly and satisfactorily answer follow-up questions from the IRS.

Client Challenges

Client needed a valuation of an orbital slot authorization as part of an impairment testing analysis. There are few publicly available transaction comparables for orbital slots and there was no cash flow to base a DCF analysis upon.

SRG Solutions

SRG has deep expertise in the satellite sector, including a proprietary database of orbital slot transactions from which to base a valuation.

Results

SRG complete the analysis promptly to the satisfaction of the client’s auditor.

Financial & Industry Research

Client Challenges

Client had an opportunity to invest in the securities of a distressed satellite operator. However, industry trends were at a crossroads and small changes would have a large impact on the value of various securities.

SRG Solutions

SRG provided detailed industry analysis based on publicly available information that accurately foresaw new trends in video and data several quarters before these trends became common knowledge.

Results

SRG insights created additional portfolio trading opportunities in the sector for our Client. Client was very satisfied and retained SRG for ongoing industry updates.

Client Challenges

U.S. Department of Justice, Anti-Trust Division (DOJ) sought financial and industry expertise to support their review of the proposed $26 billion merger of T-Mobile and Sprint. The DOJ investigated concerns that the merger would lessen competition and lead to consumers paying higher rates.

SRG Solutions

The Summit Ridge team, working on behalf of the DOJ, analyzed a variety of financial, spectrum, network, mobile wireless industry, and company-specific issues related to the merger.

Results

The DOJ announced a settlement agreement that required T-Mobile and Sprint to divest Sprint’s prepaid business, including Boost Mobile, Virgin Mobile, and Sprint Prepaid, to Dish Network Corp. The settlement also provided for the divestiture of certain spectrum assets to Dish and other concessions.

Broadcaster Repack Accounting & Consulting

Client Challenges

Client was faced with complying with a complex series of rules to obtain reimbursement for over 100 television stations impacted by the Broadcast Incentive Auction. At the time, no commercial solutions existed.

SRG Solutions

SRG devised a plan, in conjunction with Sinclair management and their advisors, to handle the reimbursement process on an outsourced basis.

Results

SRG relieved Sinclair’s internal accounting department of significant overhead and streamlined their reimbursement process. To date, all of SRG’s costs have been reimbursed under FCC rules, resulting in no net cost to the client. SRG is now one of the largest providers of repacking reimbursement support services.

Client Challenges

Many FM broadcasting stations had equipment on sites where television broadcasters were being repacked. This created disruption and, in some cases, a need to relocate FM transmission equipment. The FCC allocated funds to reimburse impacted FM stations, however the process was complex.

SRG Solutions

SRG adapted its television repack process to serve FM stations and act as an intermediary between the FCC and repack clients.

Results

Cumulus was able to increase cash flow and reduce their resources allocated to the reimbursement process. Cumulus received faster reimbursement for incurred costs, helping them finance new capital expenditures. All of SRG costs to date have been reimbursed.

Additional information about our expertise is available on our Expertise Page. Feel free to contact us to discuss our experience in other matters (subject to client confidentiality restrictions).