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.”