Thanks to the IBO for producing another informative and entertaining two days. Here are the key moments from day two.
Wealth Maximization – What Should I be Considering with Gabe Oliverio of Johnsen Fretty and Max Drachman of Drachman M&A Co.
Max – Building signs using cash from profits is the Berkshire Hathaway compound interest growth model. It is a slow, but safe and effective way to grow your business. An operator needs a sizable operation at the outset for this to make sense, but those that do will be happy they did at the end of their careers.
Gabe – Selling your business is simply the conversion of wealth on paper to wealth in dollars. The outcome of that conversion process is not pre-ordained. Long-term planning in advance of a desire to sell your business is paramount to achieving the best exit outcomes.
Max – I’ve noticed fewer upcoming generations are interested in taking over their family business, and I believe one of the reasons is some kids grow up watching how hard their parent(s) work, seeing them taking the call from their attorney, or potential landowner etc., during dinner and decide they simply don’t want to work that hard.
Gabe – Ask almost any operator who sold their billboards years ago and you’ll hear the same thing: “I wish I still had them — they’d be worth so much more today.” It’s a lesson worth remembering and a testament to the long-term value of billboard assets.
Developing New Billboard Sites with Chris Rothfelder, Mike Falick & Richard Rothfelder
A city might say, we don’t want a new sign, but we are open to a net reduction. So if they have statics throughout the city, they’ll be open to allowing you to remove two statics in exchange for one digital, resulting in a net reduction in total signs and allowing for a better product with the digital. Typically 2 or 3 to 1 is likely for a cap and trade.
My favorite tool currently is development agreements. Development agreements allow a municipality to relax their regulations in exchange for some form of benefit. It may be public benefits through the advancement of the arts or economic development or highway beautification. The easiest, most straight forward, obvious benefit is cash. Non-monetary renumeration might be a free flip on the sign. Maybe a limitation on messaging including political messages. Putting the cities logo on the sign making a gateway sign. Offer discounts to local businesses to promote economic development in the community.
AI in OOH with Jonathan & JG Graviss, Neil Bell, Ryan Peters & Richard Molinaro
I would say overall, no matter what application I am using for AI, prompts are the trick. How do I say this to this robot to do what I want. One of the things I have started doing is to ask the AI after I put in my prompts, “do you have any questions, before we begin?” It will spit back out what I am asking for and I can course correct right there.
One way I like to use AI is to have it set up the chessboard, but I know it will never make any moves for me.
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