US Outdoor revenue rose 1% to $7 billion during 2014 according to the latest figures released by the OAAA. The following chart compares US outdoor revenues with us radio revenues and the US gross domestic product. The chart demonstrates that the US outdoor revenues have grown in line with the […]
Billboard Loans Blog
Billboard Construction Costs
How much does it cost to construct a 14 by 48, two-sided, illuminated, 40 foot above ground billboard? My rule of thumb is $30,000 for wood structure, $60,000 for a steel monopole structure, and $350,000 for a digital billboard. The 2015 Billboard Structures Valuation Guides put out by the Departments […]
4 Tips For Dealing With Site Locators.
There are firms which obtain billboard permits and land leases and sell them for a fee. Most are legitimate but there are unscrupulous developers who will try to take advantage of you especially if you are new to the business. A billboard site seller has no skin in the game. […]
Outdoor Advertising Company Valuations January 2015
The rule of thumb is that an outdoor advertising company is worth 4-6 times gross revenue. My company has been involved in 18 sales of small, mostly rural billboard companies. The sales multiples varied from 3.2 times revenues to 13 times revenues. The median sales price was 4.9 times […]
How much does billboard financing cost?
What does it cost for finance your billboard company? Equity providers want to a return of 15-25% per annum with an ability to realize the return over a five year period. Lamar’s public dividend REIT is trading at a 6.33% dividend yield. Outfront Media’s REIT is trading at a 5.52% […]
Out of Home Magazine and Out of Home Weekly will cease publishing.
Received an email from Emerson Schwartzkopf saying that out of home magazine and out of home weekly will stop publishing. Emerson did a great job and his publications will be missed. Here’s the text for his email: “Out of Home Magazine and Out of Home Weekly will cease publishing new […]
Reuters says Dealmakers turn sights to US Billboards
Liana Baker of Reuters has writes here that the big four outdoor companies are flush with money and looking to roll up small operators. Billboard values are rising. Outfront Media paid 10.8 times cashflow (EBIDTA) for Van Wagner versus an 8-10 times cashflow norm for the industry.
Five Questions for Billboard Lawyer Adam Webb
Last week I had lunch with Adam Webb is the managing partner at Webb Klase & Lemond, a Georgia law firm. He is a First Amendment specialist and an expert at litigating against government restrictions on signs. Adam owns some billboards and also writes a column for Out-of-Home Magazine. You […]
Even Social Media Execs Notice Billboards
I like to listen to Econtalk podcasts on the airplane. The format consists of the Hoover institute’s Russ Roberts interviewing a guest for an hour. His guest list is a who’s who of economics and business: Milton Friedman, Thomas Piketty, Nassim Taleb, Reid Hoffman, Marc Adreessen, Jeffrey Sachs… During an […]
Stock Analyst Skeptical about Lamar
Here’s an interesting Seeking Alpha article on Lamar and the billboard industry. The article mentions two reasons why I like the billboard industry: (1) Barriers to entry caused by the need to get a sign permit. (2) The low cost of outdoor versus other forms of local media. Outdoor has […]
