Symon Communications Inc. is for sale and can be yours for as little as USD 80 million we believe. We gave readers two clues a few weeks ago to see if anyone could figure out who the following was…
- This company sells digital signage (rather well as it happens) but is hampered by a guy who works for them who thinks that it (digital signage) sucks
- The only marketing done by said company is done by said man marketing himself
Many folks called, emailed and commented and agreed with what we said above, most comments being along the lines of “seems like a smart guy but his head is just thoroughly in another line of business” (i.e. mobile) when referring to Steve Gurley, VP of Marketing at Symon Communications.
Golden Gate Capital completed the acquisition of Symon Communications back in October 2005. If they sold now and for USD 80 Million they’d probably make a handsome profit. Symon of course won’t comment officially about a sale (or not) but we hear elsewhere that Golden Gate Capital are keen to dispose of all non-industrial assets so this sort of makes sense.
There’s no doubt that Golden Gate has enabled Symon to grow into a profitable (and almost global) company through acquisitions and organic growth over the past few years.
Like all valuations that 80 million is quite presumptive since valuations simply are not more than 2x unless they have some things hidden. We understand that Symon Communications revenue for 2008 was USD 43.8M and 2009 revenue was 38.4M
The value in Symon is that they have consistently worked to build recurring revenue streams which would of course support a (nice) multiple BUT unless there is something to explain the revenue shrinkage (okay recession perhaps but many other vendors were flat that year and not down) AND they have a big 2010 in the bag, we think they’d be mighty lucky to get 50 – 60 Million.