A reader has written, "A company wants to buy one of our shows. How does one value a show?" We asked Nick Curci - firstname.lastname@example.org -and here is what he said:
"The selling price of an individual show is determined by multiplying the show's operating profit (gross revenue less direct show expenses and allocated G&A) times a transaction multiple. At the present time this multiple ranges from 4 to 12, depending on several factors including: the age of the show, historical growth rate, exhibitor retention, market competition, industry trends, market expansion opportunities, depth of existing management and other intangibles such as compatibility with the buyer's existing operations."
PTS Update Comment: Determining the value of a show is not an exact science. We suggest you work with an advisor who knows our industry and is on top of the trends.