Todd Hartman, VP at brokerage firm Kalil & Co. says deal-making in 2012 was better than in 2011, and seems to be picking up in 2013. He also believes the clouds may be breaking up a bit in the area of financing.
Current company: Kalil & Co., Inc.
Position: Vice President
Location: Tucson, AZ
Place of Birth: Sandusky, Ohio
Date of Birth: 9/29/69
Personal Status: Married: Wife, JoAnn, and 5 children, Alex, Max, Dan, Tyler, and Alyssa
College: University of Arizona
Favorite band or artist: George Strait
Favorite movie: Goodfellas
Favorite book: John Adams, By David McCullough
Sports Team Preferences: University of Arizona football and basketball, Cleveland Browns, and Cleveland Indians
Hobbies/Passions: Family, working out, golf
1. How did you get started in the business?
Prior to joining Kalil & Co., in 1999, I was in retail sales management.
2. How was 2012 for your company compared to 2011 – better, worse, the same? Any predictions for 2013?
2012 was much better than 2011. We seem to be experiencing some nice momentum from year-end 2012 that has continued into the 1st quarter of this year, and feel 2013 will be even better.
3. What do you think will be the hot trading areas, in terms of type of property (radio, TV, low power TV), market size and region?
There are buyers looking for deals in all three sectors…TV, Radio, and Outdoor. In TV there are traditional buyers looking for Big 4 cash flowing opportunities, and the Spectrum buyers are active, as well. The radio buyers are looking for cash flowing clusters with good technical facilities, primarily in rated markets. The Outdoor buyers are looking for plants of size that either currently have, or have the ability to build-out digital boards.
4. The FCC is expected to slightly relax cross-ownership restrictions and perhaps adopt measures to increase diversity, and that’s it – will this inject some life into the station trading market? And what ownership action would you like to see?
Any relaxation on the cross-ownership issue will help, and we feel further deregulation across the board will fuel more activity.
5. What is the current state of deal financing?
It continues to improve. The large lenders continue to make loans, but they require a minimum of $10 million in BCF. The mid to smaller deals are being financed by regional and/or local banks where the buyers have existing relationships.
6. Are a station’s digital elements a factor in deals, and do you expect this to be an important element going forward?
The digital elements are important in all sectors… TV, Radio, and Outdoor. Potential buyers realize the digital elements enhance current revenue streams as well as create new ones.
7. What is the key to running a successful brokerage these days?
The ability to handle different types of media – especially television, radio and outdoor in our case, and deliver results regardless of what type of deal it is. Confidentiality is key, as is knowing the buyer, the seller and the financial people taking part in the deal.
Hartman and his colleagues can be reached at www.kalilco.com
