Max Drachman is a outdoor advertising industry investment banker with Kalil and Co. We interviewed Drachman about about trends in the outdoor advertising M&A market. Max, have you closed any transactions since the last time we checked in with you in early September? Yes, we have closed four more deals […]
Billboard Loans Blog
Outdoor Valuations September 2016
Public outdoor company valuations shrank slightly during the third quarter of 2016 as this chart demonstrates: Public Company Outdoor Values September 2016 The average revenue multiple for the four public outdoor companies shrank from 3.74 times to 3.60 times. JCDecaux, Clear Channel Outdoor and Outfront trade at a lower revenue […]
Shareholder Agreements and Succession Plans
Billboard Loans has seen a lot of small outdoor companies who don’t have shareholder succession agreements. This is a big mistake. We’ve had two lending clients die suddenly. In each case their company was protected by a succession plan which allowed the business to function without disruption. What should a […]
Avoid the Equipment Leasing Death Penalty
Almost all equipment leasing companies except Billboard Loans have prepayment penalties. Sometimes the prepayment penalties are called yield maintenance clauses. Sometimes the prepayment penalty is a fixed % of the lease amount (5% in year 1, 4% in year 2, 3% in year 3…). The death penalty prepayment clause says […]
The Pros and Cons of Equipment Leasing
Many of you got your start leasing your billboards from Courtesy Finance. Courtesy is no longer around but companies like Geneva Capital write equipment leases. Here are the pros and cons of equipment leases. Pros of Equipment Leasing 100% financing. Because leasing companies understand equipment they will often lend 100% […]
Drachman says outdoor values 8-14 times cashflow
Max Drachman is an outdoor industry investment banker with Kalil and Co. We talked recently with Drachman about the M&A market last week. What transactions have you closed recently Max? So far this year we have closed seven Outdoor deals. Our most recent closing was the Lindmark/Newman deal in New […]
Outdoor Values Are 9-12X Cashflow
I talked with Gabe Oliverio of outdoor investment banking firm Johnsen Fretty about outdoor values. Sounds to Insider like now is a good time to sell your company. Seems like values are 5-6 times run rate revenue and 8-12 times run rate cashflow in the outdoor advertising market. What’s your view? […]
8 Items Your Outdoor Lender Wants
I take at least a phone call a week from a small outdoor company looking for financing. Sometimes the process drags on because the outdoor company doesn’t have the information Insider needs to evaluate the loan request. Here’s the information you should put together before you approach a lender. By […]
Limit Outdoor Debt to 3X Gross Revenue
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 […]
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], […]
