The AdMedia Partners annual survey of senior executives interviews senior executives in leading content (traditional media and digital media) and services (marketing services, digital marketing and marketing technology) businesses. They were asked for their views on the prospects for industry mergers and acquisitions in the year ahead.
Respondents believe that M&A activity will increase in 2011 – with 78–86% (of content and services respondents, respectively) expecting more M&A activity from strategic buyers and 63–68% expecting more M&A activity from financial buyers.
On the services side, approximately half of respondents considered EBITDA multiples of 8x or greater to be reasonable for companies providing analytics/optimization, mobile marketing, social marketing and marketing technology services. The median multiples for content firms were in the 5–6x EBITDA range, with the exception of online media achieving the highest valuation expectations of 7–8x. Consumer media and business-to-business media both showed significant gains in valuation expectations, jumping from 4x EBITDA in last year’s survey to 6x EBITDA this year.
The full report can be downloaded from here
USA, New York, NY