Market Valuations

Although the current M&A environment is difficult right now, quality trade shows and magazines continue to be in demand. Valuations 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.

Business Valuation Services
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.

cs_chart_2018Market Timing
Market Multiples
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.

Contact Us

Contact Us for a confidential discussion of your company, individual show or magazine. We will offer our opinion on the value of your company, the right time to sell in your market, and what you can expect in terms of selling price.

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