private equity bidders, the leading strategic players in the industry are not wavering in
the execution of their growth initiatives.
Figure 12: Importance of events to acquisition strategy – Strategics/Platform Companies
Critial
Very Important
Somew hat Important
Less Important
Not Important at All
Source: DeSilva + Phillips
Responses from private equity groups with holdings in the events market were less
uniform, and some suggested that events are less critical to their growth strategy.
Figure 13 shows that private equity groups find integrated events businesses more
desirable than standalone events businesses and would consequently offer lower
multiples for standalone events businesses. More specifically, those groups with a
less aggressive acquisition strategy in events are more interested in integrated
events businesses.
Figure 13: Most desirable type of acquisition – Private Equity Firms
Standalone
Integrated
Either
Source: DeSilva + Phillips
Globalization
Events markets offer worldwide growth opportunities. Many international organizers
are targeting the BRIC (Brazil, Russia, India, and China) economies as they have
strong underlying GDP growth and the events industries are relatively immature.
There is also substantial growth and investment in the Middle East, which has been
spurred by massive investment in venues such as the $136 million Abu Dhabi
National Exhibition Center, a gleaming 600,000 square feet facility.
The potential prize is substantial. For example, the UK-listed organizer ITE targeted
Russia in the 1990s. Its mixed launch and acquisition strategy propelled ITE to
become Russia’s leading organizer, positioning it to benefit from the substantial,
sustained underlying growth rate of Russia’s GDP.
In those industries that are global, such as aerospace or chemicals, events can be
sensibly organized on a regional or even global basis – the Le Bourget and
Farnborough airshows, for example, attract attendees from around the world. Other
industries are inherently more national/regional: building products events, for
example, attract local attendees.
12
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