Valuations in audio/video rental and production for events

searcher profile

November 22, 2023

by a searcher from Carnegie Mellon University in Boulder, CO, USA

Does anyone have experience in valuing a company that focuses on full-service event production (stages, video walls, audio systems, lighting, backline, video services). Although these businesses run an equipment-heavy operation, the FF&E gets used in relatively heavy duty (transportation, lifted, bumped around) and likely FMV depreciates much faster than straight-line. What multiples and ratios should be expected in this industry?

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commentor profile
Reply by a lender
from Eastern Illinois University in 900 E Diehl Rd, Naperville, IL 60563, USA
We have provided financing to this industry over the years. The biggest issue you have is the large CAPEX adjustments you need to make for future equipment needs. You will need to understand what type of equipment is needed for their clients and how current the equipment is. You just cannot add back all of the depreciation for cash flow. If you would like to discuss or need help looking at an opportunity in this space, you can reach me here or directly at redacted Good luck!
commentor profile
Reply by an intermediary
from Gonzaga University in Tacoma, WA, USA
All businesses are bought and sold on cashflow. If the equipment was dramatically more than the cash flow value than the owner may as well liquidate.
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