In 2020 Collingwood Advisory selected 6 active Private Equity Partners to join a panel and share insights through long form interviews and quantitative analysis of existing metrics and criteria. Careful consideration was taken as to having the right mix of PE firms who have both closed Media deals recently and also plan on further acquisitions in 2020 and 2021.
The purpose of the report is to both take the pulse of macro M&A trends among PE firms in the Media sector, and give potential sellers a set of guidelines and benchmarks that will help them to frame their business plans, and set realistic expectations on valuation and the sale process itself. The aim is to also provide the participants with an accurate benchmarking tool and sense check on acquisition criterion and valuation ranges.
- Covid has not affected PE investors’ appetite in general for media platforms, including events companies
- Deals are likely to take longer, and contain more risk/reward structures
- Resilience and top line growth are key criteria
- Digital-first and data-led companies are highest priority for PE investors
- Multiples paid for digital publishers are climbing
- Private Equity investment is carefully allocated, and the majority of businesses are not structured or positioned to become PE platforms
- Governance, succession planning, and predictability of revenues are high priorities on investment criteria
- Potential sellers should start early in building a PE ready scaleup
- Firms are sanguine about deploying funds and many have substantial dry powder planned for the next 12 months
To get a copy of the summary of the report please follow the link below.