You want to sell your TV production company? Then it is good to know what the takeover market in the field of TV production companies looks like. Dutch people watch an average of 2 hours and 34 minutes of television channels. And this seems quite a lot, but the number of minutes has been decreasing for years. TV production companies must therefore seek to win over their viewers in the current battle for attention. Fake news, advertising and on demand offerings are leading trends for this.
The number of mergers and acquisitions of TV production companies is fairly stable, but over the 10-year time frame, there has been an increase in the number of mergers and acquisitions.
There are many ways to value a business. A common method of expressing the value of a business is "a factor x gross annual profit." This factor is also called multiple and another designation for gross annual profit is EBITDA (Earnings Before Interest Taxes Depreciation and Amortization).
In the media, advertising and communications sector - which includes a TV production company - an indicative EBITDA-multiple range of 3.3 to 4.0 is currently used, according to the Brookz Takeover Barometer. The average EBITDA multiple across all SME sectors is 4.90.
The valuation of a business is often the starting point for negotiations between buyer and seller. The outcome of these negotiations is the final sales price. So valuation and price are two different quantities. Besides valuation, the price is also determined by possible scarcity in the market, bargaining power of the parties, the strategic value of the business for the buyer and possible synergy effects for the buyer (cost savings, purchasing advantages).
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Want to buy a business or sell a business in the Media, Advertising & Communications sector? With this Brookz Sector Monitor, we want to present buyers and sellers with facts, figures and an outlook that provide insight into the number of transactions, the value development of businesses and the latest trends and developments in Media, Advertising & Communications. Because in any buying or selling process, thorough preparation provides peace of mind, overview and structure.
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There are relatively many self-employed people in this sector, and therefore the number of businesses with one employed person is quite high.
In numerical terms, the number of TV production companies looked as follows in 2024(CBS):
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A number of trends and developments will inevitably cause changes in the coming years, but also offer TV production companies many growth and acquisition opportunities:
Do you remember the time of eagerly awaiting your favorite program on Thursday night at 8:30 p.m.? Or circling a great movie in the TV guide? These days are truly over since the advent of on demand television. Watching your favorite series where, when and how you want. And although this has been popular for years, this development still offers a lot of opportunities for TV production companies.
The interruption of your TV program by endless advertising is still irritating. But the way of advertising is changing. Because with 94% of television viewers also scrolling on their phones while watching, the focus of advertisers is also changing. "These devices are no longer competitors, but rather partners in achieving the same marketing goals."
Of all respondents in a large-scale media survey, 45% mentioned that they trust the news and current events on television. And that compares to 5% trusting the same content via Social Media. And with that, television still remains the most important source for watching news and finding out "the truth.
