Michael Girdley (@Girdley) and Mills Snell (@thegeneralmills) talk about a company that offers services related to aerial advertising. We discuss the deal structure, margins, and the significant pricing power enjoyed by businesses that operate billboards. Is there a moat around this business? Do we think it’s better to rent a billboard?
Company: Aerial Advertising Service Provider
Location: 21 States - US
Stated Financials: 2022 TTM $ 3.5M | 2022 Adjusted EBITDA $ 610,000
Asking Price: Unlisted
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(00:00) - Introduction
(00:54) - Our Sponsor is Acquira.com
(02:26) - We are looking to do more larger deals!
(03:46) - Deal & financials: Aerial Advertising Service Provider
(07:34) - What's happening to the margins?
(08:38) - How do billboard businesses earn a lot of pricing power?
(10:24) - What is this company's buy vs. build thesis?
(13:34) - The low Total Addressable Market Moat
(14:12) - How would we build a moat around this business?
(17:54) - What’s the case for medieval times?
(20:42) - Is it better to rent a normal billboard?
(23:03) - Will drones be a good idea?
(24:26) - What may have affected this business to grow in revenue?
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