Jordan, Edmiston forecasts robust M&A market
New York—Media merger and acquisition activity will be strong over the next 24 months, according to the third annual “Media Growth Survey Report” from media investment bank Jordan, Edmiston Group and Econsultancy, a digital publishing and training company.
The survey found three out of four executives from companies with more than $50 million in revenue expect to make an acquisition during this period.
The expected increase would continue a trend that began last year when investors returned to the b-to-b media market, said Scott Peters, co-president of Jordan, Edmiston. “B-to-b M&A had dried up for a pretty long stretch,” he said. “2012 was the year it started to rebound nicely.”
The survey found CEOs are focusing on opportunities for growth through the introduction of new products and services (61% response rate) and expansion of market share within existing markets (58%).
When looking at barriers to growth, the report found that executives' dominant concerns are about people, not technology, and specifically a “lack of talent in senior management,” according to 34% of survey respondents, up from 20% last year. This lack of talent is leading to an increase in acquisitions designed to obtain such talent, the report said.
The report was based on a survey of more than 225 industry leaders and influencers, 83% of whom are C-level executives. The survey was conducted online in October and November, with follow-up phone conversations with select respondents in late December and early this month.