Colin Morrison Joins JEGI CLARITY Advisory Board

Colin Morrison Joins JEGI CLARITY Advisory Board

New York, NY, December 2, 2020 –  JEGI CLARITY is delighted to announce that Colin Morrison has joined the firm’s Advisory Board.

Colin Morrison is a former journalist who has been CEO of media, information and events companies including: Reed, Axel Springer, Future, Australian Consolidated Press, Hearst, and EMAP.

He has managed public, private and PE-owned companies variously in the UK, across Europe, and the AsiaPacific.

He is now a non-executive director, consultant and investor in media and marketing businesses in the UK and Australia.

Colin writes and publishes the globally distributed Flashes & Flames media industry newsletter (www.flashesandflames.com).

He was honored as Officer of the Order of the British Empire (OBE) by Queen Elizabeth in 2017.

Media, Information & Technology: Public Market Perspectives

Media, Information & Technology: Public Market Perspectives

We have conducted analysis on the public international media, information and technology equity markets to explore how the broader segments and underlying sub-sectors have fared in terms of valuation and profitability YTD.

We have also analysed how businesses are viewing 2021 in terms of revenue growth projections and recovery.

Key Takeaways

Total equity market value up by 8% since January 2020
The Media, Information & Technology public equity markets continue to perform strongly, with total market value up by 8% since January 2020 against a backdrop which has seen other  benchmark indices fall 5 – 15%.

2020 EBITDA outlook revised down by aggregate $65bn
This growth in total market value has been achieved despite uncertainty around 2020 outlook which currently shows a material decline in the 2020 earnings; notably current. 2020 EBITDA market estimates have come down by $65bn since January 2020.

Average 12% revenue growth forecast for 2021 across sectors
From a valuation perspective, it feels clear that investors are looking through the 2020 numbers and pricing in strong recovery across virtually all sectors, with 12% total market revenue growth forecast for 2021.

From an M&A perspective, whilst the valuation environment remains opaque, it is clear that the strong stock prices which many corporates have sustained through this period will be highly relevant in terms of deal pricing, consideration, and structure.

To access the full report click here

Strengthening our debt advisory offering

Strengthening our debt advisory offering

We are delighted to announce that Vangelis Livanis has joined the firm as Managing Director, Debt Advisory.

Vangelis will be responsible for building out our debt advisory practice serving companies and private equity investors across the European mid-market. The new full-service offering includes acquisition financings, refinancings and covenant amendments and will complement our existing core M&A practice and further reinforce our position as a leading global corporate finance advisory firm.

Vangelis has extensive debt advisory and restructuring experience, having previously been a member of the Zeus Capital and Lincoln International debt advisory teams, where he focused on mid-market private equity transactions. Prior to this, he worked in Deloitte’s Restructuring and Business Modelling teams.

“Vangelis’ hands on and detailed approach mean that we now offer senior-led, end-to-end, Debt advisory services to the market. We are particularly pleased to have brought him on board at a time when our clients are increasingly looking to a variety of both debt and equity solutions to help them navigate through the current market conditions.”‚ Jonathan Davis, Partner, JEGI CLARITY.

“Having previously worked with JEGI CLARITY, I have been thoroughly impressed by the quality of the team and their considered and dynamic approach to running a process. I am delighted to have joined the firm and look forward to assisting our clients in today’s market environment and beyond.” said Vangelis.

Accenture acquires CreativeDrive

Accenture acquires CreativeDrive

Accenture will use CreativeDrive’s platform to enhance its content, digital marketing, media and commerce service offerings. JEGI CLARITY’s Chief Marketing Officer, David Clark, comments on the transaction.

JEGI CLARITY expands their west coast presence with the addition of Managing Director Kevin Moore

JEGI CLARITY announces the addition of MD Kevin Moore

New York, NY, July 15, 2020 – JEGI CLARITY, a leading independent investment bank serving companies in the global media, marketing and information sectors, is pleased to announce that Kevin Moore has joined the firm as Managing Director.¬† With 25+ years of domestic and cross-border transaction experience covering the software, internet and technology sectors, Mr. Moore will further expand JEGI CLARITY’s global coverage across these core markets.

Prior to joining JEGI CLARITY, Mr. Moore spent seven years at GCA Altium / StellaEOC, serving as Managing Director. He covered internet and digital media as well as software for the firm.

Global Corporates M&A Survey

Global Corporates M&A Survey


 

We have spoken to senior executives at approximately 30 global corporates in the Media, Information, Marketing, Software and Tech-enabled services sectors to gain insights as to the impact of the Covid-19 pandemic on their M&A activity over the short to medium term.

Q&A Summary

1 Will you remain active in M&A over 2020?

60% of corporates we spoke to are likely to remain active throughout 2020 Uncertainty around the timing of a return to “normal” economic activity, however, will undoubtedly impact their M&A volume, at least for the next few quarters.  

For some, M&A will continue to be a key part of their strategy, while for others, a potentially less competitive M&A environment will allow them to be more opportunistic. 

 

2  What impact do you expect to see on valuations across your sector? 

Two-thirds of respondents expect a softening in valuations, while one-third don’t expect much change This expected decline will be due to both a reduction in multiples as well as the underlying metric they are applied to. However, valuation for strategic and premium assets is likely to see less of an impact.  

3 Will current events change the way you structure M&A transactions?

Corporates were unanimous on the fact that the pandemic would impact how deals are structured At least in the short to medium term, the increased volatility has led acquirers to revisit the way their deals are structured, either as a way to bridge valuation gaps and/or to de-risk transactions. Several alternatives are under consideration and acquirers will be assessing their approach on a case by case basis.  

4 How will you approach valuation given near term uncertainty created by Covid-19?

Respondents suggested that they will approach valuation case by case and look at a combination of metrics Corporates that continue to pursue M&A will be re-looking at the way they approach valuation, particularly for those assets impacted by Covid-19. 

In Summary

The Covid-19 pandemic, with its unprecedented lockdown measures, has unsurprisingly impacted M&A activity around the world. In the sectors we cover, activity for April and May was down c.50% on the prior year. However, deal activity is yet to hit the monthly nadir seen during the 2008 crisis. Though volumes will be down, for the large part, respondents to our survey confirm that they will remain active acquirers in the short to medium term. While many will be opportunistic on where they focus their attention, others will see more focused M&A strategies given the competing use of capital.  

Early indications are showing that valuations and deal structures are being impacted to take into account near-term uncertainty, with both acquirers and sellers being more flexible and creative to get deals over the line. Further, premium assets in markets with predominantly strong tailwinds are still highly sought after and therefore less likely to have their valuations impacted. 

While volumes will likely remain low for Q3, anecdotal evidence suggests that deal pipelines are building towards a more active final quarter 2020 … watch this space! 

To access the full report click here