Investors: Value creation opportunities in the events industry

The events industry continues to offer a range of potentially attractive investment opportunities for investors. Most recently it has been a source of excellent returns for a range of private equity funds including Providence, EagleTree Capital, Wicks Group and MidOcean Partners.

AMR International is the global leader in strategy consulting to the events sector.

We see a continuing stream of potential deals across the events ecosystem. To help investors, we have compiled an introductory deck titled – The global events model: attractive investment opportunities.

To receive a copy of the investors deck, please contact:

AMR’s Executive Chairman – Denzil Rankine
Head of AMR’s Global Events Practice. Florent Jarry

Some key points from the investors deck:

  • The events industry is global.  It is a simple and highly effective model that covers both business and consumer C-Suite needs for valuable strategic information and effective marketing of brands and services.
  • As a result, the events industry is central to marketing to business decision makers and consumer buyers
  • The events ecosystem includes multiple inter-locking sectors including event organizers, event contractors (physical equipment and technology) and facilities.  Events organizers have been the focus of partial consolidation through M&A over the last 20 years.  Investors – strategic and financial sponsors – are now also concentrating on consolidating the rest of the events ecosystem to keep pace with the increasing scale of the event operators they serve
  • The events industry has strong organic revenue growth that will continue at c.5% CAGR. Strong assets have a robustness during recessionary periods that is favourable compared to many other industries
  • Other event financial metrics are also platinum standard from the perspective of banking lenders
    • EBITDA growth greater than revenue growth because of efficiencies of scale and value creation through the application of technology
    • Revenue predictability that is similar to the subscription model in other B2B segments
    • Cash flow characteristics that result in negative working capital needs as well as scope to enable financial sponsors to accelerate debt repayment and increase ROI
  • Events organic growth is driven by ongoing product introductions, new competition, and new legislation. That dynamic growth has been supplemented by M&A activity to add more scale, market coverage, and skills
  • The pool of accretive acquisition targets is deep and constantly refreshed by new participants in all aspects of the events industry
  • Technology is also playing a significant part in the evolution of the events industry both improving the event experience for participators and enabling communities to engage year-round thereby providing event operators with new and highly profitable revenue streams.  With marketing data analytics technology now adding a further dimension based on extensive event-based CRM databases hitherto largely untapped by event operators
  • Financial sponsors have played an important role in this consolidating process, acquiring events business, applying their financial and management expertise, building through acquisitions, and then realizing their investment at impressive ROIs to the major strategic events groups that need a continuing supply of inorganic growth
  • The future investment outlook for the events sector is positive – a core of major public and sponsor owned event companies trading at mid-teens EBITDA multiples, with a long tail of accretive acquisition targets that assures a competitive exit process for financial sponsors

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