Billboard Investing

Billboard Business Billboard Investing Digital Signs

Accounting for a 10 Year Digital Sign Life In A Land Lease.

Most billboard companies fail to account for sign replacement expenses in their projections.  This is not a big issues with static boards which last 40 years.  It matters however, with digital signs because they have a useful life of 100,000 hours or 11.5 years.  If you exclude replacement costs you […]

Billboard Business Billboard Investing Digital Signs

Billboard Construction Costs

How much does it cost to construct a 14 by 48, two-sided, illuminated, 40 foot above ground billboard?  My rule of thumb is $30,000 for wood structure, $60,000 for a steel monopole structure, and $350,000 for a digital billboard.  The 2015 Billboard Structures Valuation Guides put out by the Departments […]

Billboard Investing Billboard Values

Outdoor Advertising Company Valuations January 2015

The rule of thumb is that an outdoor advertising company is worth 4-6 times gross revenue.   My company has been involved in 18 sales of small, mostly rural billboard companies.  The sales multiples varied from 3.2 times revenues to 13 times revenues.  The median sales price was 4.9 times […]

A Digital Billboard Home Run
Billboard Business Billboard Investing Digital Signs

A Digital Billboard Home Run

I’m skeptical about digital signs due to the high upfront costs but here’s a real life success story from one of my clients.  This one-sided 10X24 digital sign cost $135,000 to construct.  It’s on a road leading to costco. The sign generates revenue of $4,560/month which works out to $570 […]