Figure 9: dmg world media and George Little Management
Month/Year Price ($mm) Portion Acquired Implied Valuation ($mm)
November-2000 70.0 25% 280.0
January-2005 35.1 15% 234.0
January-2007 21.0 9% 233.3
September-2007 155.0 51% 303.9
Total 281.1 100% 281.1
Source: DeSilva + Phillips database
Presumably, the deal in 2000 was to acquire subsequent portions based on the fixed
EBITDA multiple of 15.5x. If that was the case, it appears that GLM’s EBITDA had
declined between January 2005 and January 2007, and only rose to above the 2000
level in September 2007.
Where do the top events company acquirers think the market is headed?
We surveyed the leading buyers of events businesses for 2005 through the first half
of 2008. Our respondents accounted for 58% of the 149 transactions and were
responsible for 81% of the $6.3 billion cost of acquiring these businesses.
Based on our survey respondents’ input about what they are willing to pay, the
prevailing EBITDA multiples for events, by type, are somewhat lower than the
average 9.2x EBITDA multiples that were paid in the period 2005 through the first six
months of 2008. Here is the breakdown:
Figure 10: Event EBITDA Multiples by type
Event type Strategics Private Equity
Standalone Exhibitions 7.9x 8.5x
Standalone Conferences 6.4x 8.2x
Integrated Media Companies with Events 8.0x 8.9x
Source: DeSilva + Phillips database
Figure 11 below shows that the consensus among buyers on prevailing multiples in
today’s market is that they are either the same or somewhat lower than they were
one year ago.
Figure 11: Multiples today vs. one year ago
Much Higher
Somew hat Higher
The Same
Somew hat Low er
Much Low er
Source: DeSilva + Phillips
Figure 12 shows that strategic acquirers consistently describe events as either critical
or very important to their acquisition strategies. This is a significant indicator for
sustained future M&A activity in events, despite the increasingly uncertain economic
climate. Although they might struggle to pay as much for events acquisitions as
11
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