Exhibition World Issue 1 – 2019 | Page 46

Cover feature “Private Equity firms were also very interested due to the size, but the sale to Reed keeps it ‘in the family’. This is a very logical purchase for Reed given their strength in Germany,” said Monnington. “It will be interesting to see if they integrate the business into each of their country operations which would mean that the Mack Brooks brand would dissipate over time.” Providence Equity Partners, which acquired CloserStill Media at the end of 2018 is no newcomer to the sector, having previously owned Clarion Events. The move came after years of significant growth for the UK organiser, which was valued at £25m (US$32.2m) in 2012 when Phoenix Private Equity bought into the company, rising to £125m in 2015 when Inflexion bought a minority stake. Flagship events for CloserStill include the London Vet Show, Cloud Expo Asia, Data Centre World, The Pharmacy Show, Learning Technologies and The Dentistry Show. Since the Inflexion investment in 2015 the organiser has made eight acquisitions – five in 2017 and three in 2018 – but CloserStill Chairman and CEO Phil Soar highlighted that the majority of the company’s growth had been organic, much coming from the geo-cloning of successful shows in Asia, Germany and the US, with the launch of events such as Cloud Asia, Learning Technologies Germany and New York Vet. Soar added: “Providence have a superb track record in supporting growth businesses, not least in the tradeshow industry. It’s been a very successful sector for them and they understand it extremely well.” In 2011 Providence acquired George Little Management in the US, which was then sold to Emerald Expositions in early 2014 and, in 2017, the company sold Clarion Events to Blackstone for a reported £600m. Andrew Tisdale, Managing Director 46 Issue 1 2019 “Billions flowing into the industry are the proof that our industry remains attractive for investors.” parking and quality of exhibitors. “Billions flowing into the industry are the proof that our industry remains attractive for investors,” Hattendorf said. Competition Below: Mack Brooks is set to benefit from the global reach of new owner Reed, says Chairman Stephen Brooks at Providence, described CloserStill as “an exceptional business led by a strong management team with a proven track record of developing and acquiring successful events around the world. With a compelling global portfolio and diverse customer base across the technology, learning and healthcare sectors, CloserStill is well-positioned to accelerate the momentum the business has generated.” If all the M&A activity (there were 87 transactions announced in 2018 according to Monnington, who said it was the highest number since his company started tracking deal activity) can be interpreted as a sign of faith in the industry’s strength (there were 53 different purchasers – also a high) then, on the side for concern, is the clear indication that exhibitors are increasingly questioning the fundamentals of the accepted role of tradeshows. The recent UFI & Explori Global Visitor Insights study of 13,000 tradeshow visitors, provided evidence of that and much food for thought on what turns on (and off) tradeshow audiences. The research makes it clear visitors say that their interest in other channels such as online marketplaces and conferences will likely rise significantly relative to tradeshows. UFI’s MD Kai Hattendorf has also emphasised the report underlined the importance of organisers getting the basics right at their tradeshows: seating, catering, queuing, Industry commentator and expert Stephanie Selesnick, International Trade Information, Inc. writing in her UFI Blog, ‘Do you know your competition’ offered insights into how organisers could compete effectively in this environment and cited one post-show survey from one of the largest US exhibitions which contained the question: “Thinking about the future of the industry, are there any shows that could ‘steal the thunder’ of the XYZ Show, or that your company might attend instead of the XYZ Show? Which show and why?” The example came from a successful annual exhibition which engaged exhibitor and visitor bases. Its exhibition space sells out every year and there is a waiting list. It would appear such organisers should have no worries about competition. But, Selesnick used the example to show how they are smart. “The question illustrates that they are not complacent about that year’s success. No matter how successful the show, there is always competition – another show or technology waiting to pounce and take away market share.” Selesnick’s point is that asking the right questions of your exhibition’s stakeholders – exhibitors, visitors, sponsors, even media, “is one of the best indicators on the future health of not only your show, but the industry it serves”. She does note also, however, that having heard the answers, then making the adjustments is often the difficult part. As we stride into our 2019 exhibition aisles with our business models regenerating, Dr Who-style, it is those that listen to their audiences likely to be the ones attracting PE attention and creating success. w w w.exhibitionworld.co.uk