Exhibition World Issue 6 — 2019 | Page 41

Asia Comment Out with the old… A festive review of the Asia market by Bjoern Kempe nother year is drawing to a close, so a good time to recap my columns for the magazine as well as to share some wishes and expectations for the next year. Over the past two months in Asia, Comexposium and Tarsus made the news with significant investments in China for their core verticals, and both entered South China. Both organisers paid fair price to earnings ratio – Comexposium for the largest printing and stationery show in South China, with an estimated EBITDA of US$3m, and Tarsus a smaller show in Shenzhen. With multiple millions spent, it is clear that China is currently on the list of almost every company and I expect several M&A activities in the coming months by Blackstone, Comexposium, Tarsus, Informa, Reed and possibly GL, as well as Deutsche Messe Hanover, DMG and Munich. China, currently, is the last market that offers a strong domestic economy regardless of geopolitical tensions. Although the GDP is currently revised at about 6%, the exhibition market in China currently offers stable growth and niche opportunities for all organisers. We also see the multiples coming down from double-digit to single digit at around 8.5-10.5, which is good news for potential buyers. Another exciting market seems to be India where Reed, Informa and Messe Munich are currently on top. German Messes and UK companies have been exploring the region and could bring some warm air in the winter. Similar to China, India still offers great opportunities for new launches and M&A, so it’s no surprise that Informa recently launched its medical vertical in India and many others are on a ‘shopping tour’. w w w.exhibitionworld.co.uk I expect Reed, Informa, Comexposium, Nuremberg, Dusseldorf and Frankfurt to be rather aggressive in the Indian market, to compensate for missing M&A in other regions of the world. South East Asia has been a tad disappointing in my view. Singapore exhibitions are not in great shape, and many family-owned exhibition companies in Malaysia, Thailand, Vietnam and Indonesia are on the market looking for buyers. This speaks a story that things are not easy for the local families. However, with the appetite from Blackstone, Reed, Informa, Comexposium, Tarsus, Deutsche Messe and Hanover, I also do expect several deals to surface in the coming months and to strengthen this region again. Some government led shows in the region might also be on the shopping list. Björn Kempe, CEO ExposAsia Overall, all markets are still sellers’ markets with many targets for sale. So, falling leaves? I expect some falling leaves in these countries, as a possible icy winter will hit Europe, UK and Americas markets with almost no recovery in Russia and Turkey. I believe the East, with China, India and South East Asia, will see a strong increase in M&A and consolidation in the coming months and that market expansion in the East will help many international organisers to overcome their possibly declining results in other regions. My wishes for Christmas and the New Year are simple: the international exhibition industry has to continue to go back to the basics and focus on visitor communities and their interest. I keep hearing everywhere in Asia the problem being raised of fewer visitors – but are we doing the right things to attract them? Do we really know what they want? Are we prepared for business people travelling more selectively? Balanced geographies and market coverage will play an important role for our industry. I also wish to see the continuation of our industry consolidation because the big organisers will be able to adapt locally and grow our industry. Of course, it is sad to see our family exhibition organisers slowly disappearing, but at least they passed a legacy to us to take care of their business and bring it to the next level. Finally, I wish to see more bravery from all of us and to launch new shows and new topics in our markets; without new launches and without smaller shows our exhibition industry is only half interesting – meetings, incentives, conferences and confex are equally important for our industry. I wish all of you a great start to 2020, wherever your business lies. Issue 6 2019 41