Gail Chiasson, North American Editor
Mark Boidman, director of investment banking at Barclays Capital, New York, who has executed more than $40 billion in investments, says that his company has capital to invest in digital out-of-home – but it appears that there are only a limited number of companies out there with the revenue and scale that might interest Barclays.“Many DOOH companies are too small,” Boidman told attendees at the Digital Signage Investment Conference in New York last week.
“While we do work with companies to raise capital, unless you have $20 million–to-$25 million in revenue, it’s more difficult to work with. But we do want to get to know you. We want to help you raise capital and then maybe take you public.”
Boidman said that private financing has picked up and that things are now better, but firms looking for investment must have credibility.
“You need to show us your numbers and we must understand them. Investment means high capital but it also involves high risks, so we must understand your plans.
“Investors are interested in your space,” he said. “Whereas out-of-home shows 3%-4% growth, DOOH is about 12%. But there are a lot of risks involved. Investors don’t know the field well. There doesn’t seem to be a lot of strategic interest or buyers. But growth equity players have interest.
“If you have a DOOH company, try to position yourself in the best possible light. Be organized. Have a solid plan. We evaluate on revenue, numbers, growth, marketing. If you don’t have high growth, there’s little interest.”
October 24th, 2012 at 13:17 @595
Name me one with $25m in revenue?
October 24th, 2012 at 15:58 @706
Next year’s DSI needs to skew its speaker panels to Angels and Early-Stage Investors looking for cos needing <$5M, and revenues <$10M, not so much $25M EBIT given the current call for consolidation. With today's content development & distribution-technology advancements ($ lean CapEx), a potential high-growth DOOH/DPB network could be developed at moderate-to-low risk.
October 24th, 2012 at 17:21 @765
I enjoyed this presentation and the conference. It’s a about time someone who actually knows something says something
October 24th, 2012 at 17:32 @772
I agree – most doohs dont have $2.5mill in revenue. So is he basically saying he cant help any of us until we are 10x bigger? His presentation was excellent and informative.
October 25th, 2012 at 17:27 @769
In response to Phil Austin’s comment above, Symon Communications has had profitable global revenues of over $25M for the past 9 years.
Phil, perhaps you can visit our UK operation in Hemel Hempstead and meet our Managing Director Dan Horgan to understand the size, scope, and capabilities of one of the largest Digital Signage industry participants.