GCF - Our added value in Media, Culture & Entertainment sector - 0823.pdf
1. OUR ADDED VALUE & M&A TRENDS
IN THE MEDIA, CULTURE & ENTERTAINMENT SECTOR
BUY SIDE – FUNDRAISING – SELL SIDE
AUGUST 2023
2. 2
P R I V A T E & C O N F I D E N T I A L
TABLE OF CONTENT
I. Market trends in the Media, Culture & Entertainment sector 03
III. Our expertise, added-value & methodology
in the Media, Culture & Entertainment sector 10
IV. About GEREJE Corporate Finance 20
II. M&A trends in the Media, Culture & Entertainment sector 06
4. 4
P R I V A T E & C O N F I D E N T I A L
THE GLOBAL MARKET
After falling 2.3% in 2020, total global entertainment and media revenue rose a strong 10.4% en 2021, resuming
its trend of outpacing global growth
Source : PWC, Deloitte
Large media companies consistently create richer
experiences and contents to improve their ROI
• Social media drives 50% of media and entertainment companies
New growth opportunities with digital and cloud
developments
▪ CAGR of 4.6% (2021-2026)
Video games market is booming
▪ Video games revenue = +8,4% CAGR (2021-2026)
Media, Culture & Entertainement
market size (in $tn) 2021 vs 2026
2,34
2,93
0
0,5
1
1,5
2
2,5
3
2021 2026
5. 5
P R I V A T E & C O N F I D E N T I A L
POPULAR INVESTMENT TRENDS
Unequal access to the Internet which should be reduced
in the coming years
▪ In 2021, 72.7% of households had fixed broadband internet access
▪ In 2021, 60.7% of the population had mobile internet access
Sources : GCF Research
Digital advertising
▪ 2021 digital advertising revenues = +24% vs 2020
▪ Market value = $180bn (2021) vs $410bn (2026) = 19% CAGR
OTT Videos
▪ 12% CAGR (2022-2027)
▪ User penetration will be 36% in 2022 and is expected to hit 44% by 2027
6. M&A TRENDS IN THE
MEDIA, CULTURE &
ENTERTAINMENT
SECTOR
II
7. 7
P R I V A T E & C O N F I D E N T I A L
Company Size
▪ The largest the company, the higher the multiple with key thresholds (10M revenue;
50M revenue; 100M revenue…)
Profitability
▪ EBITDA margin compared to peers may be the most important comparison criteria
when the companies’ sizes are similar
Market position
▪ A leading position within a local market improves a valuation multiple, on the other
hand, a mid-tier position will drive a lower valuation.
Within the same sector, valuation multiples vary according to the size, profitability, and market
positioning of the company
M&A TRENDS – VALUATION METRICS
8. 8
P R I V A T E & C O N F I D E N T I A L
RECENT TRANSACTIONS [1/2]
Date
Buyer /
Investor(s)
Target
Transaction
Value
Information
Learn
More
Jul.
2022
€250m Seedtag (ES) : leader in contextual advertising here
Jul.
2022
-
Zacu (RW) : a major actor in the production and
distribution of content in Rwanda
Canal + (FR) : France's leading audiovisual media
group
here
Apr.
2022
$8m
Gadsme (FR) : specialized in the marketing of
advertising displays in video game scenes
here
Jun.
2021
$75m
Brut (FR) : media that targets young people who
are far from traditional information channels
here
Source Mergermarket, Fusacq, GCF Research, MBA Capital Click on the logo to access the website.
9. 9
P R I V A T E & C O N F I D E N T I A L
RECENT TRANSACTIONS [2/2]
Date
Buyer /
Investor(s)
Target
Transaction
Value
Information
Learn
More
Mar.
2023
€40m
Brut (FR) : media that targets young people who
are far from traditional information channels
here
Nov.
2021
€70m
Plug in digital (FR) : distributor and publisher of
video games
here
Sep.
2021
$680m Sorare (FR) : a NFT sports entertainment group here
Aug.
2021
-
Primephonic (NZ) : a provider of music
streaming services specialized in classical
music
here
Oct.
2021
$50m
Homa Games (FR) : the world’s leading platform
for creating and publishing mobile games
here
Source Mergermarket, Fusacq, GCF Research, MBA Capital Click on the logo to access the website.
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P R I V A T E & C O N F I D E N T I A L
OUR EXPERTISE & ADDED VALUE [1/2]
We have a strong expertise & experience in the media, culture & entertainment sector. We
have a direct access to > 700 companies in this specific sector in Europe, Asia, and
internationally
1. Our Expertise & Experience in the sector
Our multicultural teams with our own offices in Europe (Paris, Geneva, Lyon, Nantes,
Vienna, Lisbon, Munich), in Asia (Singapore, Hong Kong) and our partners in the Middle
East, Africa and the US
2. Our International presence
Entrepreneurs close to Entrepreneurs = reactivity & adaptability
3. Our “entrepreneurial” culture
Privileged access to > 500 investors (Cap development funds, VC, debt funds, Family
Offices), with a specific interest in the Media, Culture & Entertainment
4. Our Privileged access to Strategic & Financial Investors
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P R I V A T E & C O N F I D E N T I A L
OUR EXPERTISE & ADDED VALUE [2/2]
We prefer to act over the long term as partners alongside business leaders
5. Advisor & Partner
With over 80 closings between 2016 & 2022, GEREJE is No. 1 & No. 2 between 2016 & 2021 in
the Advisory Fusacq ranking – Corporate banking fundraising rankings in France
6. Our Track-Record
Our expertise in structuring complex operations : Earn-Out, Management Buy-Out, Owner
Buy-Out, Joint Venture…
7. Our Expertise in complex structuring
We work with no conflict of interests and ensure confidentiality & discretion
8. Our independence
13. Servais MICOLOT
Senior Advisor at GEREJE Corporate Finance
13
P R I V A T E & C O N F I D E N T I A L
Expert in sales & business development
Help Entrepreneurs to grow
Education:
Bachelor’s Degree in Economics
Key Points:
30 years of experience in national and international sales & business development
Entrepreneur with creation of 3 companies
EXPERIENCE & EXPERTISE
➢ +20 years in the media industry
➢ Launched more than 100 products/services
➢ Owner & CEO of a sales & business development firm
➢ Specific expertise in the sales & business development
➢ Sales strategies & negotiations
➢ Market opening & Distribution network
➢ Market study & Business plan
OUR EXPERTISE IN THE SECTOR
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P R I V A T E & C O N F I D E N T I A L
Option: Preparation of a "Long-List" of
potential targets in the targeted sector
and geographical area and ranking them
in order of interest and according to M&A
criteria (sales, EBITDA, etc.)
Initiate contact between GEREJE and the
target(s) (without giving the name of the
client) to validate their actionability
Meeting between GEREJE and the client
to select a short list of targets to be
approached in phase 2
Assist our client in the final Due
Diligence
Optimize the discussions between all
involved parties: legal, audit,
accounting…
Advise on the best strategy and tactic
for final negotiations with the target(s)
until closing.
Assist in the drafting & proof-reading of
final contracts.
Drafting & negotiation of a Letter of
Intent (LOI)
Management of client’s questions &
requests (Q&A)
Optimize the negotiations with the
target
Advise on the best structuring (equity /
debt / mix) in the interest of the
shareholders
Option : Preparation of a strategic and
financial note (detailed profile of the
target) for the client
Signing of the Letter of Intent (LOI)
Signing of a Reciprocal Confidentiality
Agreement (RCA).
Meeting between the target and the client
to confirm the strategic fit and the mutual
willingness to enter negotiations
Phase 1 – 1 to 3 months
Market Screening & Preliminary
Approach
Phase 2 – 4 to 9 months
Maximization of Negotiations –
Signing of LOI
Phase 3 – 2 to 4 months
Final DD – Offer – Optimization of the
Closing
OUR BUY-SIDE METHODOLOGY
15. 15
P R I V A T E & C O N F I D E N T I A L
BUY-SIDE BEST PRACTICES [1/2]
DEFINE clear & ambitious strategies for yourself & the
potential target
1
2
BE PROACTIVE: approach actionable and specific targets
→ value creation
3
TIME is the essence: giving rhythm by respecting a
structured process
4
COMMUNICATION: take the time to explain every step
until the closing
1
2
3
4
16. 16
P R I V A T E & C O N F I D E N T I A L
BUY-SIDE BEST PRACTICES [2/2]
OPTIMIZE the structuring to align the interests regarding
valuation
5
THINK about the forward value by working on a joint business
model
6
ANTICIPATE tax and legal issues (shareholders' agreement)
7
ANTICIPATE the cultural differences (cross border)
8
17. 17
P R I V A T E & C O N F I D E N T I A L
OUR TAILOR-MADE FUNDRAISING & SELL-SIDE PROCESS
Phase 1 – 1 to 2 months
Preparation phase
Financial analysis (past results and
business plan)
Analysis of possible structuring schemes
(equity/debt/mix)
Set-up of an electronic dataroom
Blind Teaser online on our web
platform
In order to optimize the process, it is essential to prepare the project seriously, explain the use of the
funds and demonstrate the positive impact on turnover and margins
Phase 2 – 2 to 6 months
Selection, teasing and approach of
investors - Maximization of
negotiations
Identification of candidates (”long list”)
Checking of candidates’ seriousness, e-
NDA signing, transmission of
documents
Management and optimization of
negotiations with a ”short list” of
qualified candidates
Phase 3 – 1 to 2 months
Closing optimization
Optimize the discussions between all
involved parties, in particular, legal &
audit advisors of both parties
Supervision of financial audits (option)
Advise on strategy and tactics for final
negotiations
Prepare a Strategic & Financial Note for
investors
Negotiation and signature of the Letter
of Intent (LOI), including all the key
terms of the deal
Transition to phase 2 after mutual consent
Valuation report for business owner(s)
Approach of candidates with a 100%
digitalized process
Set-up of a calendar & deadlines
Advise on the different structuring
schemes (earn out) and final review of
the documents in a M&A point of view
Prepare the executive managers for the
negotiations with the investors in Phase 2
18. 18
P R I V A T E & C O N F I D E N T I A L
DIFFERENT TYPE OF INVESTORS
Strategic and financial investors have different investment criteria and objectives involving
different sales strategies and structuring scenarios themselves
• Strategic investors are often competitors, suppliers or customers of the target.
• Their objective is to identify companies whose products or services can be integrated in synergy with their
existing portfolio or gain market share, in order to create long-term value for their shareholders.
• The main driver of the acquisition is strategic (vs. rapid return on investment). These buyers may also be
unconnected to the target and seek to expand in its market to diversify their revenue sources.
Strategic
investors
• Financial investors/buyers include private equity firms, hedge funds, family offices ...
• These players make investments in companies and achieve a return on investment within 5-7 years with a
sale or IPO.
• Some Family Offices have an unlimited time horizon and can invest large sums of money to support the
growth of the business at all stages of its development.
Financial
investors
These buyers have fundamentally different objectives, so the way they will approach
the activities of the targets in an M&A process will differ considerably.
19. 19
P R I V A T E & C O N F I D E N T I A L
OUR DIRECT ACCESS TO FINANCIAL PLAYERS
Private Equity
Tickets : 30-150 M€
France / Europe
Portfolio: SadeTelecom, GL
Events, Federation
Entertainment…
Private Equity
Tickets : 5-25 M€
Europe
Portfolio : IPSSI, ESCG…
Private Equity
Tickets : 0,5-3 M€
Europe
Portfolio: Melty,
BenchmarkGroup, Creads…
Private Equity
Tickets : 15-120 M€
Monde
Portfolio: Shiro Games, AD
Education, Iziwork…
Private Equity
Tickets : 2-7 M€
France
Portfolio: Éditions Jocatop…
Family Office
Tickets : 5-35 M€
France / Europe
Portfolio: Albertschool, Beat
the Bomb…
Private Equity
Tickets : 2-15 M€
France / Europe
Portfolio: Groupe SCP, Smart
Good things, Groupe
Adaming…
Venture Capital
Tickets : ~ 100 K€
France / Europe / USA
Portfolio: Kelvin,
Studiomatic…
21. 21
P R I V A T E & C O N F I D E N T I A L
THE “GEREJE” PHILOSOPHY
In the 13th century, the Emperor Kublai Khan awarded
Marco Polo a gold tablet in the form of a long piece of
currency named « GEREGE » along with a password,
which ensured numerous privileges to the beholder.
With this golden passport, Marco Polo obtained all
necessary protections, supplies and assistance which
included horses, food and equipment for his safe return to
Venice accompanied by his immense fortune.
The GEREJE, first diplomatic passport,
ensuring safe and secure cross border
transactions, is a powerful symbol
matching perfectly our mission and goals
GEREJE team members share a common
passion in dealing with cross border
transactions and are united around the
GEREJE symbol reflecting our mind set as well
as our working philosophy.
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P R I V A T E & C O N F I D E N T I A L
OUR WORLDWIDE REACH
We are an independent M&A firm with an “entrepreneurial” culture, providing both strategic and financial
advisory services, composed of a multidisciplinary team based between Europe & Asia
Our Corporate Film
EUROPE
▪ Paris
▪ Lyon
▪ Geneva
▪ Nantes
▪ Vienna
▪ Lisbon
▪ Munich
ASIA
▪ Singapore
▪ Hong-Kong
EUROPE
MOYEN-ORIENT
ASIE
23. 23
P R I V A T E & C O N F I D E N T I A L
EXECUTION TEAM ENSURING THE QUALITY OF THE DOCUMENTS
Fabrice LOMBARDO
Founder & CEO
Antoine ALEMANY
Partner, Lisbon
Clarisse SUN
M&A Associate, Paris
Laurent GOBINET
Partner, Nantes
Hugo MONNET
M&A Vice President, Lyon
Servais MICOLOT
Partner, Geneva
Jeff CZELUSTA
M&A Director, Munich
Hannah DERENBACH
M&A Analyst, Paris
24. 24
P R I V A T E & C O N F I D E N T I A L
SENIORS BRINGING SECTOR & GEOGRAPHIC EXPERTISES
François LAURENT
Senior Advisor, Hong-Kong
Olivier JOB
Senior Advisor, Lyon
Jean de MORAS
Senior Advisor, Paris
Arnaud BEASSE
Senior Advisor, Vienna
Maurice LAM
Executive Director, Singapore
Gregory LAM
M&A Vice President, Singapore
Bertrand LAM
Partner, Singapore
25. 25
P R I V A T E & C O N F I D E N T I A L
Partial or Total Sell mandate
Managing and Optimizing a sell process, leveraging on
our structuring experience, valuation expertise &
international network to maximize the transaction price.
Using every financial tool to align the interests of all
parties.
OUR SERVICES
The quality of our services relies
in our 100% in-house team
enabling us to manage the
entire transaction process,
thereby ensuring efficiency,
confidentiality and tangible
results
Buy mandate / Acquisition / Joint Ventures
Optimizing external cross-borders expansion strategies.
Global Knowhow, Local Approach
Strategic Advisory – Business Consultancy
The experience and operational know-how of the senior
team allows us to optimize the development strategies of
companies and thus facilitate the management of
corporate finance issues (Fundraising or acquisition)
Fund raising mandate & IPO – Capital development
Structure a solid & realistic business plan in order to
maximize the valuation forward and raise the capital
needed (Equity, Debt, Convertible Shares).
Local Markets Approach and Implementation Assistance
for IPO to maximize forward value & optimize
Transaction Structuring
26. 26
P R I V A T E & C O N F I D E N T I A L
OUR PROVEN METHODOLOGY
GEREJE is recognized for the quality of its documents (strategic & financial analysis) based on personalized execution, enhanced
by a multidisciplinary team acting under one hat !
Execution
Excellence
Each assignment is managed by
one Team leader to optimize the process
We rely on our own proprietary
research
Our mandates are on an exclusivity basis
only, including fixed and success fee
Our mandates are tailor-made
We manage 100% of the Transaction
coordinating the process
We deliver regular reports to optimize
the momentum
Our digital platform allows us to have constant
access to all the necessary information
27. 27
P R I V A T E & C O N F I D E N T I A L
OUR RECENT TRACK RECORD
With over 80 closings between 2016 and 2022, GEREJE is N1 or N2 M&A firm for smid cap for the past 6 years in the Advisory
Fusacq ranking – Corporate banking fundraising rankings in France.
2021 – Acquisition –€50m Sales 2021 – Joint Venture
2021 – Debt Financing: €2.5m 2019-20 – Capital Injection: €6m 2019 – Sell: €55m 2018 – Sell: €7m
Target:
Learn more
Target:
Learn more
Investors:
Learn more
Crowdfunding:
Investors:
Learn more
Investors :
Learn more
Acquirer:
Learn more
Groupe
AMIQUAR
2021 – Acquisition – €10m Sales
Target:
Learn more
2021 – Fundraising: €7m
Investors:
Learn more
28. 28
P R I V A T E & C O N F I D E N T I A L
OUR REFERENCES– SMID & LARGE CAP
Click on the logo to access the website.
29. 29
P R I V A T E & C O N F I D E N T I A L
OUR STRONG NETWORK OF PARTNERS
Our solid network of partners in Europe and Asia enable us to get qualified, updated information in order to
accompany our clients and create value.
EUROPE
Access to +1,100 Family Offices
+150 banks & private bankers
+100 law firms
ASIA
Access to +700 Family Offices
+200 banks & private bankers
+150 law firms
Partnership signed with Business France (website) in 2021
Coverage of 110 countries, offering a direct access to
international investors
30. 30
P R I V A T E & C O N F I D E N T I A L
TESTIMONIES
In this complicated economic
environment, the support and
involvement of the GEREJE teams
were key to the success of the
project.
Mr. François-
Denis POITRINAL
Founder & CEO
Thank you for the excellent work
done by the GEREJE team.
Mr. Kaci KÉBAÏLI
Founder & Chairman
GEREJE supported us successfully &
diligently in structuring our
fundraising process so we can keep
control of our company, They did a
great job at finding the right
investors for our projects!
Mr. Francois
CHABANIAN
Founder & CEO
In this complicated economic context,
the support and involvement of the
GEREJE teams were key elements in
the success of the operation
Mr. Guillaume
RAGUET
CEO
*click on a logo to access the website
31. 31
P R I V A T E & C O N F I D E N T I A L
Articles
Surveys
Capgemini - Media et divertissement/
Mind Media - Les start-ups françaises des médias, de la publicité et de la culture
Ark invest - The digital advertising market
PWC - Perspectives from the Global Entertainment & Media Outlook 2022–2026
Deloitte - Digital media trends
BIBLIOGRAPHY
