Lamar’s local managers have a lot of power in finding and originating acquisitions. What have you learned about making good acquisitions for Lamar?

I think it was Whiteco’s Company President, Bill Nassau who told me way back in the late ’80s, “Not every billboard has to be yours. You’ll save a lot of money if you remember that.” That advice really stuck with me. He was talking partly about competitive leasing — when you have multiple bids on a spot — but also about how the most cost-effective way to grow is to build your own inventory whenever possible.

But, of course,the big change since that time is the development of digital billboards. They can really upset the competitive apple cart — not only in terms of quickly shifting market share, but also in the ability to hold market rates and even land rental expectations. We’re fortunate here in Harrisburg. There aren’t many competitve outdoor companies in the area, and so most of the inventory carries the Lamar logo.  Also, over the years, when competitors have popped up, we’ve been able to build good relationships with them and, we’ve been able to cash them out — making them happy with the money they earned and making us happy with the new inventory we gained.

Paul Gartland, our regional manager, has been instrumental in our acquisition success.   He’s the guy with both feet on the ground — helping us negotiate, smooth out the details, and get deals across the finish line. Certainly, relationships are one of the keys to successful acquistions and in many cases we bring the opportunity to the table, but Paul is key to making it happen.

In fact, just last month, I had something come full circle. I had played golf with a billboard operator about two years ago and told him, “If you ever want a partner, or if you’re interested in a management agreement, or even selling your inventory, please give us a call.”

Well, two years later, out of the blue, the time on the golf course paid off as we received an email note, “I hope you’re still with Lamar. I’m ready to explore an offer for my inventory.” 

Buying Smart

Every potential acquistion requires the local GMs to create a pro forma with best estimates for the following 24 months performance top and bottom line,  When we put these pro formas together for acquisition approvals and the suggested offer amount, you have to be smart.   You need to value the inventory high enough so that the approved acquisition offer will get the deal done, but not so aggressively that your budget is then raised beyond what the inventory can deliver.  Lamar management is smart about it too. They do lookbacks — checking a year or two later to see if we delivered what we promised when we bought the inventory.

I’m proud that within Lamar we have a reputation for hitting and even exceeding the expectations we set. Folks at the home office, like Buster Kantrow and others, know they can count on us. If we say a billboard is going to do “X” and then we pay “Y” for it, we’re going to deliver “X” — and hopefully “X plus.”   But, at the same time, remembering Bill Nassau’s advice does come in handy when as a local manager you really consider if the potential acquisition is a must-have or if you might be smarter to “save a little money as not every billboard has to be ours.”