Plural Strategy and Collingwood Advisory recently held two roundtable discussions in London and New York, based on this year’s Media Acquisition Report. The 2023 Media Acquisition roundtables enabled discussion from private equity investors, as well as leading media and information businesses. Panellists were drawn from: Informa; FT; Arc; CloserStill Media; Bowmark; Stone-Goff and MountainGate Capital.
Themes which emerged from the panel discussions and audience questions include:
- Cautious Optimism
- Overall, there is a sense of cautious optimism for M&A in 2024, with some variance by sector
- Increasing cost pressure has led to the need for agility e.g. use of freelancers vs FTEs, particularly in the events sector where organisers are facing higher venue costs
- Artificial Intelligence (AI)
- Media and information businesses are increasingly adopting AI to iterate digital content and enhance data-analytics capabilities
- Understanding how AI will affect the business model is an important consideration in M&A processes
- Membership models
- The growth of membership models and the opportunity to align with an events model was raised by audiences
- Membership models in events have a feedback loop built-in, which can help to inform product development
- There are untapped opportunities in events communities
Top tips for sellers
Our panellists of buyers in London in New York offered some top tips for business owners considering selling:
- Get your financials in shape – have three years of accrual based accounting
- Consider what you personally want to achieve after the deal closes – set up a succession plan if you wish to step back
- Leave some growth on the table for the buyer
- Know your customers and users well
- Be able to clearly articulate how you add value in a differentiated way and how you grow it moving forward
- Have clear data on revenue by client
- Ensure cultural, strategic and economic alignment with the buyer
- Don’t hold back on any key information before the deal closes
Download the Media Acquisition Report https://www.pluralstrategy.com/media-acquisition-report-2023/ to discover buyer perspectives on the M&A market in the UK and US.
