Private Equity



New Media Equity Ventures

Although our acquisition structures are often very complex, our investment philosophy is fundamentally simple: NewMedia Equity Ventures, our investment affiliate, acquires high potential digital media firms in friendly, board of directors supported acquisitions, and then partners with management to grow and improve these firms, thereby creating meaningful and sustainable shareholder value as a result of our involvement with the firm.

Our work with management involves formulating competitive corporate strategies to grow and operationally develop the business, implement optimum capital structures by undertaking responsible leverage levels, and our expertise to jointly develop a mutually acceptable yet challenging business plan. Ultimately, we are proactive board members who clearly understand the business managers’ need to have operational autonomy and, most critically, result ownership.

To align interests between the shareholders, managers, and employees we structure and implement an appropriate equity-based incentive scheme so that managers and employees can directly benefit from their efforts in further growing and developing their firm.

Our Value Creation Strategy is simply to derive the majority of our investment gains through rapid and sustainable improvements in core EBITDA (increasing absolute values as well as margins) rather than through complex financial engineering.


Investment Criteria

NewMedia Equity Ventures seeks to acquire outright, or majority, ownership of digital media firms engaged in the creation, management, and distribution of consumer-oriented digital media content.

We evaluate each acquisition opportunity on its own merits, utilizing our proprietary MediaVenture® analytical framework as well as taking into account the numerous strategic, qualitative, and quantitative factors present in each deal.

There are, however, a number of guiding criteria that enable us to quickly screen potential acquisition candidates:

Company

  • Willing selling shareholders
  • Clear potential for market leadership
  • Proven product or service offering
  • Existing customer base
  • Synergistic fit with other portfolio firms
  • Moderate ongoing capital expenditure requirements

Geography

  • Eastern United States
  • Western Europe

 

Financial

  • At least 3 years of recurring revenue
  • Positive EBITDA
  • Healthy cash flow conversion ratio
  • Low debt leverage
  • Realistic, market-based enterprise value

Management

  • Experienced and media savvy management team
  • Favorable employee relations