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Broker Ranking 2014 – Growing Volumes for the fifth Year

 

For the first time since 2007, the brokered deal volume (excluding investment banks) exceeded a billion dollars. A total brokered deal volume $1,068.4 million made 2014 one of the top-three years out of the last 10 (see table 1).

 

Investment banks would have added another $5.6 billion, but in order to give traditional brokers the recognition they deserve, we excluded these deals from our Top-Brokered-Deals list. Deals exclusively brokered by banks included the two top-deals of the year, the [193221] merger of Media General, Inc. and LIN Media LLC, brokered by J.P. Morgan Securities LLC and RBC Capital Markets LLC and the [195940] merger of E. W. Scripps Company and Journal Communications, Inc., brokered by Methuselah Advisors LLC, Evercore Partners Inc. and Wells Fargo Securities LLC.

 

In 2013, all deals being worth $100 million or more were brokered exclusively by banks. In 2014, two traditional brokers either  registered hundred million dollar deals of their own (Bergner & Co.) or partnered with a bank in such a deal (Minority Media & Telecom, together with Moelis & Co. LLC). Consequently, both brokers found themselves in the top-ranks of 2014.

 

In the last ten years, we registered four different brokers at the top of our ranking. In 2015, a new name joins the gold-medal ranks. Bergner & Co. registered not one, but two hundred million dollar deals. Michael Bergner assisted Beasley Broadcast Group, Inc. in a [197357] station swap with CBS Corporation, that was estimated to be worth $150.0 million. He was also the exclusive broker in the $105.5 million [194993] sale of four FM stations from Wilks Broadcast Group, LLC to Steel City Media, Inc.

 

Media Venture Partners LLC came in at rank two for the third year in a row. MVP did not register a hundred million dollar deals, but instead brokered 12 deals between $1.0 million and $57.0 million and assisted in the sale of more radio stations (78) than anybody else. Top deal was the $57.0 million [194993] sale of 19 radio stations and one translator from Main Line Broadcasting LLC to Alpha Media Group, Inc.

 

At rank three, Minority Media & Telecom Council entered our top-ranks for the first time. The council represented LIN Media in a three separately filed spinoffs after the LIN/Media General merger. The largest one was a swap with [196399] Sinclair Broadcast Group, Inc., in which LIN divested TV stations WLUK and WCWF and the programming of WTGS. We estimated this portion of the swap being worth $87.5 million, while the entire transaction, including Media General’s WJAR (represented by Moelis & Co. LLC) was estimated at $207.5 million.

 

In five of the last ten years Kalil & Co. Inc., was the top-broker. This year, Kalil came in at rank four, registering the $72.0 million [194685] sale of nine radio stations from South Central Communications to Midwest Communications, Inc. Kalil may have slipped out of the top-ranks this year, but over the past ten years, the company still commands an impressive lead (see table 9), accounting for $2.0 billion of the $9.0 billion total brokered deal volume since 2005.

 

Patrick Communications LLC secured rank five this year. The company is also within the top-three by bumber of radio stations and by number of TV stations. Patrick Comm.’s largest [192892] deal was the $30.26 million slae of three TV stations and 28 translators from Chambers Communications Corporation to Heartland Media LLC.

 

Media Services Group made rank six by deal volume won one of our sub-sections: Nobody brokered more deals (34) than MSG. Media Services Group does not only lead the 2014 list by number of deals but also our ten year ranking by number of deals with 227 transactions. Top deal in 2014 was the $13.75 million [199151] sale of nine radio stations from Access.1 Communications Corporation to Alpha Media Group, Inc.

 

Ranks seven through twelve were taken by five brokers, Richard A. Foreman Associates, Schutz & Company, John W. Saunders, Jorgenson Broadcast Brokerage and Serafin Bros. Inc. each logging deal volumes between $10 million and $20 million. Nineteen more brokers, led by Star Media Group Inc. at rank 13 finished the year with deal volumes between $1 million and $9.5 million.

 

Over all, we registered 47 individual brokers, 31 of which logged deal volumes of a million dollars or more. Compared to recent years (40 Brokers each in 2012 and 2013), this is a very encouraging sign for the future. Also encouraging is the fact that 22 brokers who didn’t register a deal in 2013 were back in 2014 and joined the 25 of 2013’s brokers who were back this year.

Volker Moerbitz