Where Are Digital Media Valuations Now?
We are starting to see more institutional investors enter the content sector, providing healthy competition to strategics. These types of investors include midmarket private equity funds backing operators, lower mid-market private equity funds, strategics and ultra-high net worth investors—typically deploying $10-25 million per acquisition. These investors are highly data-driven and long-term in their analysis, so most business owners find success in exit planning through FE ahead of time (3-12 months in most cases). Data indicated that companies that go through 6-12 months of exit planning sell for at an average 14% higher multiple than those that do not.
Whether these business valuations are forward-looking, and based mostly on revenue or EBITDA depends on a number of variables. Our team can put together a more detailed and accurate valuation for you. While the general valuation drivers above are a key consideration, it’s important to note that every business is unique, and each has its own priorities in terms of metrics. As the valuation process goes deeper, more business model-specific factors come into play when determining a final multiple.
FE International
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2024 Digital Media M&A Report
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