Media M&A Outlook For '08: Prognostications From Berkery Noyes, Petsky Prunier & AdMediaPartners

Three media and marketing investment banks have come out with their 2007 review and 2008 prognostications on the M&A (we reported on rival bank Jordan Edmiston Group’s report earlier this month). Interesting reports from Berkery Noyes, AdMedia Partners and Petsky Prunier.

Berkery Noyes: The bank looks at various media and information sectors, with both a recap and forward look. On valuations: “After several years of steep increases in valuations–where generous terms drove leverage multiples as high as 10.5 times earnings before EBITDA–we anticipate stable pricing for the foreseeable future, with companies valued under $500 million financed at multiples in the range of four to six times EBITDA. With little incentive to wait, sellers have new impetus to initiate a transaction sooner rather than later.” The chart on the right shows median deal values and multiples over 2007 (click on it to get the bigger chart).

by AdMedia PartnersAdMedia Partners (PDF link): This is the yearly survey from AdMedia on the M&A sentiment in the media and marketing industry, and it presents a rosy picture of the deals sector, despite pessimism about economy. Of course that was December, and in January the forecasts from economists are a bit more dire. Some of it is reflected in the survey: “In a significant shift, just 46% of respondents advise prospective buyers to

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