Welcome to the inaugural edition of the Iremia Management Newsletter.

We are thrilled to bring you insights and best practices on all things B2B media and marketing services.

Our goal with Iremia Insights is two-fold:

1. Help business owners understand the benefits of private equity investment and how they should approach growth and M&A.
2. Help fellow deal makers better understand the sectors that Iremia Management invests in.

We plan to share expert insights, success stories, and thought leadership from our team and network of operating partners.

Join us as we explore the exciting world of media and marketing services!

About Iremia Management

We are a private equity firm focused on making investments within the media and marketing services verticals.

Our strategy is to reduce risk through a deep understanding of partner companies and the industries in which they operate.

Our team and network of operating partners have decades of experience within the mentioned verticals along with a vast network of experienced operators and investors.

If you are a business owner/shareholder that may be interested in selling or recapitalizing your business, feel free to reach out and get in touch with our team. We also welcome any opportunities from brokers or intermediaries. Contact: [email protected]

Value Drivers in Marketing Services M&A

After a few years of evaluating deals within the marketing services space, we believe that there are several key factors that primarily drive valuations higher or lower within the typical EBITDA multiple ranges for B2B product and service businesses.

Depending on the value drivers mentioned below, B2B media and marketing agencies can be valued anywhere from ~5–20x EBITDA. We wanted to give an overview of the factors at play and what could constitute a premium valuation.

Valuation Factors

• Scale and market presence
• Competitive differentiation
• Recurring & repeat revenue
• Organic growth
• Profit margin and efficiency

What constitutes a premium valuation?

Scale and market presence

• The business is a market leader with a national or global presence

Competitive differentiation

• The business has a strong culture with low employee turnover (below 10–15%)
• The management team has differentiated industry knowledge along with a set of industry-leading partnerships
• The team has made investments in technology to drive efficiency

Recurring and repeat revenue

• The majority of revenue is subscription-based and there is a large base of repeat clients
• High re-occurring demand for services with long-term engagements

Organic growth

• Ability to demonstrate strong revenue CAGR (greater than ~10%)
• There is a strong end market with clear growth opportunities

Profit margin & efficiency

• Operating with an EBITDA margin of more than 15%
• The business has implemented the proper infrastructure to support future growth.

Final Thoughts

As both an operator of businesses and an allocator of capital, Iremia is constantly assessing the value drivers of potential investments.

If you have any questions about valuation multiples for your business, always feel free to reach out to us.

Our Investment Focus

• Industry focus: Media, and marketing services
• Size: EBITDA of $3 million — $25 million / $10M to $250M enterprise value
• Geography: North American headquarters
• Target Transaction: Preference towards majority but open to significant minority investments as well
• Business Profile: Niche or defensible business position, strong continuing management team, and scalable business that can benefit from operating leverage

If you are a business owner looking for a partner to take your business to the next level of growth feel free to reach out. We would love to learn more about your company and explore a potential investment opportunity now or in the future.

Contact Us

Operational best practices

source: permanentequity.com

Why should you work with us?

Iremia Management is an extremely supportive partner of management teams. We believe that the most successful opportunities are created by management teams with strong operating autonomy. By identifying value drivers that can improve performance, our team is able to create incentives that align management teams with the interest of shareholders.

At Iremia, we honor individuals who become entrepreneurs and work hard to provide them with the best outcome for their businesses.

End Remarks

Thanks for tuning in to the first edition of Iremia Insights.

We’ll be sharing operational and investment insights on a bi-weekly basis, along with podcasts with leading CEOs. We have a ton of content lined up for business owners, and investors. We’ll be covering lots of valuable topics including:

• Buying media and marketing services businesses
• How Iremia Management operates
• Operational insights for agency owners
• Deal structuring

Make sure you follow us here on Medium and share with anyone that may be interested!