 2007: Four acquisitions, adding nine events and two magazines
As of November 2007, Canon had grown its EBITDA by 33% and its revenue by
55%. So far in 2008, Canon has continued to pursue acquisitions:
 2008: Two acquisitions, adding two events
Today, after completing ten acquisitions, Canon has broadened its focus to
encompass the technology-based manufacturing industry and has created a large
footprint in Europe.
Multiples and valuation drivers
Multiples for events businesses for the period 2005 through the first half of 2008 in
the DeSilva + Phillips database show average multiples of:
 Revenue: 2.4x
 EBITDA: 9.2x
As in most other M&A markets, larger transactions command higher multiples. For
example, transactions over $250 million had average EBITDA multiples of 12x, or
more; whereas smaller transactions under $100 million had, on average, EBITDA
multiples of less than 9x. Of course, these multiples have trended downwards in the
past 12 months. Although they have not declined dramatically, we do expect that
trend to continue until there is a broader rebound in the credit market.
In our experience, the key valuation drivers for events transactions are:
 Growth. The higher growth a property can demonstrate, the higher the
multiples buyers are willing to pay.
 Profit margins. Events typically enjoy high margins, and high margins
command a higher purchase price.
 Diversification. Revenue spread across media that is not dependent on print
advertising is increasingly important. Events are an obvious complement to
traditional magazine businesses.
 Competitive advantage. Buyers seek properties with strong market
positions that are not threatened by competition.
 Cash flow and predictability. Strong forward bookings for exhibition space
and attendance, and sold-out sponsorship inventory, are clear signs of
predictable revenues.
Case Study: Big Deals, Big Multiples
dmg world media and George Little Management
In 2000, dmg world media acquired 25% of George Little Management (“GLM”), the
largest privately held U.S. tradeshow management company, for $70 million. The
implied valuation of the company at that time was $280 million, and based on GLM’s
EBITDA of $18.1 million, the transaction multiple was 15.5x EBITDA. For a reader in
2008, this is an eye-popping multiple, but for a vintage 2000 deal for a pre-eminent
exhibition business it was less so.
Over the next seven years, in three additional transactions, dmg world media
acquired the remaining 75% of GLM. Adding the four transactions together, the
combined purchase price was $281.1 million. The implied valuation for each of the
four transactions is shown below:
10
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