As sold listings in the digital space are in the free fall, with Q4 2022 might turn out even worse, my prediction from last November in “5 trends (and 2 non-trends) in Content Website Aggregation for 2023” already turned into reality: A relatively constant supply meets a plummeting buyer base.
3 Implications:
- asset prices for 6-figure and upwards assets might drop even further
- the demand for remaining top-notch assets will remain stable
- “alternative” funding structures – according to FE international c. 32% of all deals are already implicating seller financing, earnouts, holdbacks, and similar structures – will increase, mitigating the risk from the seller by a performance-based structure.
Andrew’s Acquire recently launched their LOI builder, targeting exactly this: “Seller holdback and Seller financing” Is All-cash dead? Sellers will have to get more creative in structuring their deals, and adjusting their own risk while remaining attractive for sellers. credit image: Centurica Market Watch Insights listings by quarter / Nate Ginsburg