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Although the current M&A environment is difficult right now, quality trade shows and magazines continue to be in demand. Valuations are are low from a historical perspective, but they are still at reasonable levels. There is great
opportunity to either maximize the selling price of your
shows/publications in any market as long as they are marketed properly.
Trade shows and trade publications are attractive not only to other industry buyers, but also to investment groups.
Private equity funds discovered the value of business-to-business media over the past ten years, and they continue to acquire companies to build large media corporations.
This consolidation will continue since it is a proven
method of increasing sales, earnings and return-on-assets.
We offer formal business valuation services for trade shows, consumer shows and trade publications. Clients retain us for this purpose when they want to have a formal valuation for determining the true market value of these related assets for many reasons: (1) to decide if they want to proceed with a sale on the open market, (2) to determine a valuation for internal equity share transfers or (3) to determine a value for tax or estate planning purposes.
Determining company valuation and transaction multiples is
not an exact science. This is why it is so important to work
with an advisor who is an industry expert and is on top of
the trends. Our unique methodology and complex formula for
determining a realistic market price range for any media
property has been developed over time and has proven successful for many satisfied clients.
Average selling prices for trade shows, trade publications
and media companies have been volatile in recent years, but they are now holding steady at their current reduced levels. Typically, the selling price is determined by multiplying a company's earnings before interest, taxes, depreciation and
amortization (EBITDA) times a transaction multiple.
This multiple is determined by incorporating performance trends, industry trends, historical growth rates, sales
volume, competition, market expansion opportunities,
new product launches, age of shows/magazines, depth of
management, owners continuation and retention of
clients. The transaction multiple increases as the size of
the show/magazine increases. In special cases where the
company has an inconsistent earnings history or is not
currently profitable, sales are used instead of EBITDA to
apply the transaction multiple.
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