At martinsdelima, we have extensive experience in analyzing the changing advertising industry, both in traditional environments and in the digital ecosystem, ranging from the analysis of the digital advertising market and participation with expert reports in litigation, to the valuation and structuring of corporate transactions in agencies and communication groups; also including technical reports for employment regulation files in advertising organizations.
We have worked for large global online advertising platforms, sector associations, and media groups that market advertising space.
Economic expert reports
Among others, we have prepared technical reports on the functioning of the markets, competition between channels (television, press, radio, outdoor, digital) and the factors that determine the allocation of advertisers’ budgets.
Our knowledge of the sector also extends to large communication groups that depend on the sale of advertising as their main source of income. For these companies, we have carried out economic and productive analyses of their advertising sales divisions, evaluating the evolution of investment in media, the impact of the macroeconomic environment (including the effect of COVID-19), the profitability by business lines, and the need to adapt cost structures and commercial models to a market in accelerated transformation. These reports combine the study of the communication sector with the detailed analysis of income statements, margins, staff structures and investment capacity of the groups, providing a solid quantitative basis for strategic decisions and reorganization processes.
Valuations
A relevant part of our practice focuses on digital marketing and advertising companies, including agencies specialized in marketplaces and online media campaign management. For this type of client, we have carried out comprehensive business valuations, supported by discounted cash flow methodologies and market multiples, detailed analysis of historical results, revenue structure by service, and growth opportunities (new markets, new platforms, service expansion). These works include the identification of value drivers, the comparison with listed companies in the sector, and the elaboration of growth and sensitivity scenarios that allow determining reasonable valuation ranges for corporate operations.
Business plans
We have prepared business plans for traditional advertising agencies, digital advertising agencies, and agencies specializing in Market-Places such as Amazon.
Transactions
We work on M&A transactions in the advertising and digital marketing sector from the first approach to the completion of the transaction and including the collection of variable installments (earn-outs)
Our work includes the preparation of sales books and investment memoranda, the construction of business plans and financial projections, the valuation of the target companies and the definition of the economic logic of the transaction. Likewise, we have advised on the structuring of payments (fixed and variable prices, earn-outs, purchase and sale options), on the identification of relevant contingencies and on the translation of all this into clear economic terms for letters of intent (LOI). Finally, martinsdelima supports in the processes of Due-Diligence, purchase agreements and finally in the collection of Earn-Outs.