Billboard Loans Blog

Billboard Values

Outdoor Values Are 9-12X Cashflow

I talked with Gabe Oliverio of outdoor investment banking firm Johnsen Fretty about outdoor values. Sounds to Insider like now is a good time to sell your company. Seems like values are 5-6 times run rate revenue and 8-12 times run rate cashflow in the outdoor advertising market. What’s your view? […]

Billboard Lending

8 Items Your Outdoor Lender Wants

I take at least a phone call a week from a small outdoor company looking for financing. Sometimes the process drags on because the outdoor company doesn’t have the information Insider needs to evaluate the loan request. Here’s the information you should put together before you approach a lender. By […]

Billboard Lending

Limit Outdoor Debt to 3X Gross Revenue

3 times annualized revenues is a reasonable debt limit for most small billboard companies. Here’s why. If you borrow less than 3 times gross revenue, your plant will be worth more than debt even if revenues drop and multiples contract during a recession. Industry revenues declined 20% during the 2008-2009 […]

Billboard Values

Max Drachman Sees M&A Opportunities For Independent Outdoor Companies

Our sister website www.billboardinsider.com has published a terrific interview with outdoor advertising broker Max Drachman.  We’ve reproduced the interview here. Investment banker Max Drachman of Kalil & Co has been busy doing outdoor transactions. Insider asked Max to talk about the outdoor M&A market. You can reach Max at kalil@kalilco.com, […]

Billboard Values

Max Drachman Says Outdoor Market Strong

Max Drachman is an outdoor advertising investment banker with Kalil and Co. Drachman talked with us earlier this month about outdoor values and trends in the transaction market. What trends did you see in the transactions market in late 2015. From our perspective, the end of 2015 was consistent with […]

Billboard Values

Outdoor Values December 2015

Public outdoor values remained stable during the fourth quarter of 2015. The three public outdoor companies have an enterprise value of 3.9 times revenue and 12.3 times cashflow (EBIDTA) at December 2015. Lamar’s multiple increased slightly during the quarter, Outfront’s multiple was stable and Clear Channel’s multiple decreased. Lamar had […]

Billboard Lending

Federal Reseve cracks down on risky loans.

The Wall Street Journal reports that the federal reserve is cracking down on risky loans which have the following characteristics: Lax repayment schedules. An absence of loan covenants. Debt/Cashflow (earnings before interest, depreciation and amortization) in excess of 6:1. A crackdown may mean the regulators put the heat on Clear […]