We all thought this was coming. For the past year, the billboard industry has experienced a slowdown in merger and acquisition (M&A) activity. Speculation around 2024’s subdued deal flow attributed much of the decreased activity to the high-interest rates seen throughout 2023 and early 2024. In addition, there was a sense the prior years high deal volume simply decreased the number of deals available.  As has been written about and commented on over the past year, many experts predicted deal flow would pick back up as interest rates eased, and more deals came to market.  It seems that “rubber is finally meeting the road”.   

Renewed Deal Activity Signals Confidence
With interest rates easing, and more transactions becoming available, Stark Capital has noted increased activity in the market.  Below are a few recent deal announcements: 

• Media Choice: Made several acquisitions, expanding across multiple markets. 

• Jones Signs: Acquired Northern Outdoor. 

• New Traditions: Acquisition of RSA Media. 

• Adams Outdoor: Triad, Cook Brothers, and Kegerreis Outdoor Acquisitions. 

• Huntington Billboards: Acquired Moreland Signs.  

• Franklin Outdoor: Acquired Houck Outdoor.  

In addition, Stark has several transactions under LOI set to close in early 2025. 

These deals highlight the appetite for growth as industry confidence builds, signaling a promising year ahead for those looking to buy, sell, or expand. 

What Does This Mean for Buyers, Sellers, and Value? 

At Stark Capital Solutions, we’re seeing improvement in the M&A landscape as the balance between interested buyers, interested sellers, and common market value expectations improves: 

• Sellers: With a healthy pool of well-capitalized buyers, sellers are likely to secure deals at fair prices. The increased competition for quality assets translates to a higher likelihood of closing transactions at favorable valuations. 

• Buyers: Renewed activity means more opportunities, but also more competition. Buyers should expect to make strong, well-considered offers to stand out in this efficient market. 

• Value: These market conditions create what we like to call an “efficient market” where deals are expected to fall within a fair price range. Properties aren’t selling at irrationally high prices, nor are they undervalued, creating an equilibrium driven by supply and demand dynamics for transparent and fair transactions. 

What We Are Seeing As Market Pricing
For OOH companies generating $1MM or greater in cash flow, valuations are averaging between 10x and 13x annual cash flow. For transactions with less than $1MM, valuations range between 9-12x annual cash flow.  We have seen a number of transactions in the market that do not have trailing cash flow.  Therefore, the valuations are based on Pro-Forma cash flow.  For these transactions we are seeing valuation ranges between 6-8x projected cash flow. 

How Stark Capital Solutions Can Help You
As experts in billboard financing and M&A advisory, Stark Capital Solutions understands the nuances of the outdoor advertising industry and provides clients with tailored solutions for growth. Whether you’re looking for financing to expand your billboard portfolio, or seeking the perfect buyer for your assets, we have the resources and expertise to guide you through each step of the process. 

The Opportunity Ahead
For both buyers and sellers, 2025 presents exciting possibilities. The conditions are right, the market is efficient, and Stark Capital is here to help you navigate this exciting environment.  

Ready to explore your options? We would love to talk to you! Whether you need funding for a new billboard or acquisition or are looking to buy or sell your billboard assets, Stark Capital Solutions is ready to get you the best deal.

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