Valuations in audio/video rental and production for events

by a searcher from Carnegie Mellon University

1 year ago

Does anyone have experience in valuing a company that focuses on full-service event production (stages, video walls, audio systems, lighting, backline, video services). Although these businesses run an equipment-heavy operation, the FF&E gets used in relatively heavy duty (transportation, lifted, bumped around) and likely FMV depreciates much faster than straight-line. What multiples and ratios should be expected in this industry?

0 likes
35 views
2 comments

lender from Eastern Illinois University

We have provided financing to this industry over the years. The biggest issue you have is the large CAPEX adjustments you need to make for future equipment needs. You will need to understand what type of equipment is needed for their clients and how current the equipment is. You just cannot add back all of the depreciation for cash flow. If you would like to discuss or need help looking at an opportunity in this space, you can reach me here or directly at --@----.com Good luck!

1 year ago | like reply | 1 like

intermediary from Gonzaga University

All businesses are bought and sold on cashflow. If the equipment was dramatically more than the cash flow value than the owner may as well liquidate.

1 year ago | like reply | 0 likes

More on Searchfunder

Just Closed on My First Deal! Reflections and Takeaways for other Searchers

45,152 transactions are available on Searchfunder (now searchable by keyword)

Now everyone has unlimited IBISWorld access

Family office looking for traditional searchers

Investor seeking Self-Funded Search Deals

Downsides of "buying a job" below 750k+ EBITDA?

2 Best Ways To Find Motivated Sellers, Off-Market Deals

6-7x for a Self-funded Search Deal?

Searchfunder is an online community and toolkit for searchfunds. Over 80% of those involved in searchfunds maintain a Searchfunder.com account to help them network, problem solve challenges, and keep up with the industry.

We maintain partnerships with database providers that make searching more effective, efficient and affordable along with features that help searchers find deals and investors and vice versa.