0 Listings
Sports, art, travel, and other leisure pursuits are just a few of the consumer discretionary services that fall under the umbrella of the entertainment and recreational services sector. Sports product merchants, caterers, restaurants, and other facility maintenance services are the main sources of income for businesses in this sector. Entry barriers are high in the entertainment sector, and planning major events calls for significant upfront funding in addition to solid industry networks and relationships.
Depending on the target demography and sub-sector, the industry expanded by roughly 10.4% in the past year. increased demand was fueled by rising exogenous income, increased discretionary spending, and positive consumer sentiment. As affordability and living standards continue to rise, this tendency will continue to create demand. Additionally, the industry will have additional tailwinds due to growing globalization and demand from foreign tourists.
Growing household debt and rising interest rates will partially counteract this demand rise by lowering discretionary spending. Overall, the industry will continue to develop faster than the market, even if there is a slight slowdown in the rate of expansion.
The performance of this industry is heavily reliant on consumer sentiment and disposable income because it is a very consumer-centric sector. The broader macroeconomic backdrop, which includes inflation and economic prosperity, has a significant influence on these variables.
Consumer contact with the industry is determined by technological advancements; similarly, businesses providing entertainment services need to figure out how to adjust.
In-depth knowledge of the company’s markets is necessary for M&A activity in the entertainment sector. BB Capital, the top private market M&A advisory firm in Saudi Arabia, is aware that selling a company is a significant choice. A committed business owner aims to sell their company to a qualified buyer who can carry on the company’s legacy in addition to maximizing the amount of money they can get from the sale. With a wealth of deal-negotiating experience, BB Capital has worked on valuation and M&A consulting mandates in the entertainment sector. Our knowledgeable advisory staff will help your company through the whole sell-side M&A process.
Understanding certain crucial elements unique to the entertainment sector that could affect the possibility of a possible sale is crucial for entrepreneurs and business owners considering a possible sale. These elements influence how appealing a company is to possible investors and buyers.
Seasonality and cyclicality: Sports and tourist enterprises in this sector tend to operate seasonally, with the highest profits occurring during the sports and vacation seasons.
High barrier to entry because of capital requirements: Businesses in this sector frequently offer event-based services, which means they have to have strong supplier relationships and a lot of capital.
Whether it’s a sale or a valuation, our team can offer resources and experience that are only available at larger companies, together with the individualized attention of our M&A Advisory team. Reach out to one of our advisors by contacting us right now.
Our Process
Khalid.Alsuhaim@bluebeachcapital.com
+966 50 580 5050
