Max Drachman of Drachman M&A Co. sent us a summary of his comments at the Out of Home mergers and acquisitions panel which Billboard Insider moderated at last week’s IBOUSA show.

• There’s been an uptick in multiples in the last six months.  Market share is becoming more valuable.  Digital billboards in large markets are highly attractive.
• Revenues are climbing.  In the current inflationary environment companies are paying more to advertise to consumers who are paying a lot more for products and services.
• Tax increases are looming.  A few more sellers are coming to the market, however their inventory is quickly being absorbed by buyers.  It remains a seller’s market.  All the large companies are buying as well as the independents.
• Financing is easiest for small and large borrowers.  If you want to borrow less than $10 million there are lots of options (e.g. Billboard Loans, Metro Phoenix Bank,  Stark Capital, Verde Outdoor Capital.  In the $10-70 million range there are limited options mostly with larger regional banks.  Above $70 million there are lots of large lenders (e.g. Barclays, Carlyle, JP Morgan, US Bank)

You can contact Max at 520-372-1400 or max@drachmanco.com.

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