3 times annualized revenues is a reasonable debt limit for most small billboard companies. Here’s why. If you borrow less than 3 times gross revenue, your plant will be worth more than debt even if revenues drop and multiples contract during a recession. Industry revenues declined 20% during the 2008-2009 […]
Author: Dave Westburg
Max Drachman Sees M&A Opportunities For Independent Outdoor Companies
Our sister website www.billboardinsider.com has published a terrific interview with outdoor advertising broker Max Drachman. We’ve reproduced the interview here. Investment banker Max Drachman of Kalil & Co has been busy doing outdoor transactions. Insider asked Max to talk about the outdoor M&A market. You can reach Max at [email protected], […]
Max Drachman Says Outdoor Market Strong
Max Drachman is an outdoor advertising investment banker with Kalil and Co. Drachman talked with us earlier this month about outdoor values and trends in the transaction market. What trends did you see in the transactions market in late 2015. From our perspective, the end of 2015 was consistent with […]
Outdoor Values December 2015
Public outdoor values remained stable during the fourth quarter of 2015. The three public outdoor companies have an enterprise value of 3.9 times revenue and 12.3 times cashflow (EBIDTA) at December 2015. Lamar’s multiple increased slightly during the quarter, Outfront’s multiple was stable and Clear Channel’s multiple decreased. Lamar had […]
Is the outdoor advertising market overheated?
Media businesses go in cycles. After a string of good years the acquisition market becomes frothy. Prices push high. And lenders and buyers do foolish transactions. Insider thinks the out of home market is becoming overheated and this is a bad thing. Here’s why. New Entrants. Insider is receiving a […]
Federal Reseve cracks down on risky loans.
The Wall Street Journal reports that the federal reserve is cracking down on risky loans which have the following characteristics: Lax repayment schedules. An absence of loan covenants. Debt/Cashflow (earnings before interest, depreciation and amortization) in excess of 6:1. A crackdown may mean the regulators put the heat on Clear […]
If you think the big banks don’t want to lend to you it’s because they don’t.
The Wall Street Journal writes this morning that the biggest banks in the US are making far fewer loans to small businesses than they did a decade ago. The Journal reports that the 10 largest US banks held $44 billion in small business loans (loans less than $1 million) in […]
Max Drachman of Kalil and Co on Outdoor Values
Max Drachman is an outdoor industry investment banker with Kalil and Co. I talked with Max this week about the outdoor advertising acquisitions market. 1. Paul Wright of Signvalue told me recently that outdoor values are hovering around 5.25 times net revenue and 10.5 times cashflow this year. Is this […]
Billboard Company Values September 2015
Public outdoor valuations declined during the third quarter of 2015, in line with a general drop in the stop market. The three public outdoor companies have an enterprise value of 3.9 times revenue and 12.1 times cashflow (EBIDTA) at September 2015. Clear Channel sells at the lowest multiple due to […]
What Are Billboard Easements Worth?
Here’s a recent post I put up at www.billboardinsider.com about valuing billboard easements. I get asked what what billboard easements are worth all the time. I’m used to seeing a value of 6-10 times cashflow for billboard easements. 6 times cashflow for fast or distressed sales. 8-10 times cashflow for […]
