Broker Dick Foreman is on the hot seat today as we continue to grill brokers about the wheeling and dealing they expect to see at the Radio Show in Austin in two weeks. Things have been relatively quiet since the blockbuster deal David Field put together with CBS that will end up bringing CBS Radio under the Entercom umbrella later this year. We asked Mr. Foreman what he’s hearing and who he’s expecting to see deals from when the industry gathers in Texas beginning September 5.
Radio Ink: Are you expecting a lot of executives to make the trip to Austin talking deals at the show?
Dick Foreman: Not absolutely sure, but my thoughts are that a good many radio folk will not be attending due to the pressing need to continue to focus on the revenue line.
Radio Ink: How has the deal chatter been in your world so far and what are you expecting we’ll see in the next 6 months to a year?
Dick Foreman: Radio continues to be hampered by the lack of serious, financially credible buyers who are willing to pay-up for transactions. Buyers are there…providing that the multiples are less than 5.25X bcf — with the hope of some seller paper. Expecting a slight pick-up in the fall.
Radio Ink: How is the inventory out there?
Dick Foreman: Not much is available — many owners are simply waiting out the deal stream, hoping for an enhancement in cash flow multiples.
Radio Ink: Are companies waiting on the sidelines, building up their money just waiting for something to break?
Dick Foreman: Maybe some, but few that I’m aware of.
Radio Ink: Name three companies you expect to see the most activity from in the next year.
Dick Foreman: Entercom (obviously with CBS pending); Saga (redeploying their recent TV deal proceeds); perhaps Townsquare.
Radio Ink: What have you been most surprised about in the last year in your business?
Dick Foreman: General malaise in radio deal stream. Too small a number of radio folks who have truly embraced the digital sector to enhance their primary business into advertising’s future.
Radio Ink: Are you going to Austin for the show? If not, why not? If yes, where can people find you?
Dick Foreman: Will be in Austin for one day only; best to contact me through email: [email protected]
