B-to-b media veteran Dan McCarthy in August was named partner at media investment bank DeSilva & Phillips. Prior to joining D&P, McCarthy was CEO of real estate publisher Network Communications, and earlier served as CEO of Primedia Enthusiast Group.
Media Business: What's your outlook for b-to-b media M&A for the rest of this year and early 2012?
It will continue to be very active. There are increasingly motivated buyers, and there are sellers with good assets that want to be able to take advantage of the recovery in the market.
MB: To what do you attribute the recent surge in b-to-b media deals?
There are three factors. One is timing. There's been an extended period of low activity in the marketplace, so there's pent-up energy in the market. Second, there is more business-model validation. Companies have demonstrated that they've got tactics to address their market that create engagement and results with a profitable business model that can continue to be successful. Third is that, if you're in an attractive market—a market that's got scale, where you've got a demonstrated strong position—people have somewhat more confidence in the outlook for those markets. We've returned to a more normalized sense of how the economy will perform. It's not necessarily going to be a robust recovery, but increasingly there's more predictability about how markets will perform.