Non-linear linkage of tenancies with EBITDA in a portfolio optimization situation

We recently advised on a transaction that involved pooling of two tower portfolios with optimization of tenancies – the EBITDA impact of exit of second and third tenant on the unit economics was significant, although the unit and revenue impact was not that pronounced. Estimating and factoring such non-linear impacts into portfolio valuation provides a realistic valuation, and allows for contractual ring-fencing to mitigate exit risks.