The Jordan Edmiston Group (JEGI), a US based leading investment bank to the Media and Information Industries,  presented its Q3 2007 Media & Information Industries M&A Overview at the recent by invitation only Outsell Signature Event.

According to JEGI, the M&A market for media and information companies in the most recent quarter was clouded by credit market disruptions and concerns for a potential advertising and broader economic downturn.  While a large number of transactions were announced, the pace slackened and some notable previously announced deals stalled.  Nonetheless, M&A for the media and information industries scaled to a record high in the first three quarters of this year. 

According to Wilma Jordan, Founder and CEO of JEGI, transaction multiples are a strong indicator for buyers’ assessment of high growth sectors and increasing competition for deals are driving up multiples.  For that reason Private Equity firms find media businesses appealing. Buyers were prepared to pay higher ‘strategic multiples’.  Notwithstanding the current credit crunch a vast pool of invested capital existed and she remained optimistic about the prospects for the industry.

Source: Jordan Edmiston Group Inc.

BIIA Newsletter November 2007 Issue