Survey: BTB M&A Activity Will Continue in 2006

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Business-to-business media companies will remain active in mergers and acquisitions next year, according to a survey released yesterday by New York investment bank AdMedia Partners.


The second annual Top Management Snapshot Survey was conducted at the recent ABM Top Management Meeting of BTB media executives. The survey found that 62 percent of respondents expect to be buyers in 2006 and 22 percent expect to be sellers.


Regarding magazine transactions only, 53 percent expect their companies to be buyers of magazines in the upcoming year while 19 percent expect to be sellers. Last year, 68 percent said they would buy magazines and 10 percent expected to sell.


In events, 51 percent said they would be buyers, 10 percent characterized themselves as sellers and 39 percent plan to be inactive.


Respondents also said they would be comfortable buying magazines at an average price of seven times earnings before interest, taxes, depreciation and amortization and selling them at a multiple of 8.7, a 15 percent and 12 percent increase over this year's prices, respectively. They also said they would be comfortable buying events at an average price of 7.7 times EBITDA and selling at a 9.4 multiple, a 22 percent and 19 percent increase over 2005 prices, respectively.


Forty-seven percent of respondents said they participated in a transaction in the past year as either a buyer or a seller.


Chantal Todé covers catalog and retail news and BTB marketing for DM News and DM News.com. To keep up with the latest developments in these areas, subscribe to our daily and weekly e-mail newsletters by visiting www.dmnews.com/newsletters
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