Magazine Publishing Industry Mergers & Acquisitions to Continue

Posted on June 12, 1998

In a representative sampling of magazine publishing industry senior executives and entrepreneurs, more than 82 percent revealed that they are contemplating a merger or acquisition within the next three years, according to the first annual Jordan, Edmiston Group Magazine Industry M&A Survey. Sixty-eight percent indicated that they will be undertaking a merger or acquisition within the next year, while the remaining 14 percent plan to do so within the next two to three years.

"These findings confirm that we can expect the increased pace of activity we have experienced during the first six months of 1998 to continue, as long as the capital markets remain strong," said Wilma Jordan, Chief Executive Officer.

Nearly two-thirds of the survey respondents indicated that they are considering the acquisition of a trade show or event as part of their growth strategy. Nearly half (49%) of the respondents indicated that they are planning to launch a website over the next 12 months with the goal of eventually launching an offline magazine or media property.

Magazine industry executives ranked a successful meshing of cultures as the number one challenge that they face in a merger or acquisition, followed by executing the necessary measures to create value for shareholders.

The principal strategic goals of these acquisitions, according to three-quarters of the magazine industry executives, are to increase market share and create financial and operating synergies. Legal and tax exposure issues are of greatest concern to the majority of these executives when undertaking the due diligence for an acquisition.

The Jordan, Edmiston Group, Inc. Magazine Industry M&A Survey was conducted in conjunction with the third annual Magazine Publishing Industry Mergers & Acquisitions Forum held at the Grand Hyatt in New York on June 8 and 9, 1998. The 62 respondents included owners, chief executive officers and senior level managers of magazine publishing industry companies.