Michael Girdley (@Girdley) and Mills Snell (@thegeneralmills) talk about a company that offers services related to aerial advertising. We discuss the deal structure, margins, and the significant pricing power enjoyed by businesses that operate billboards. Is there a moat around this business? Do we think it’s better to rent a billboard?

Company:   Aerial Advertising Service Provider

Location:   21 States - US

Stated Financials:   2022 TTM $ 3.5M    |   2022 Adjusted EBITDA   $ 610,000

Asking Price:   Unlisted

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Show Notes:

(00:00) - Introduction

(00:54) - Our Sponsor is Acquira.com

(02:26) - We are looking to do more larger deals!

(03:46) - Deal & financials: Aerial Advertising Service Provider

(07:34) - What's happening to the margins?

(08:38) - How do billboard businesses earn a lot of pricing power?

(10:24) - What is this company's buy vs. build thesis? 

(13:34) - The low Total Addressable Market Moat

(14:12) - How would we build a moat around this business?

(17:54) - What’s the case for medieval times?

(20:42) - Is it better to rent a normal billboard?

(23:03) - Will drones be a good idea?

(24:26) - What may have affected this business to grow in revenue?Additional episodes you might enjoy:

#164 - Annual Report Filing Software#163 - Make $2.3M/yr owning a Flight School#162 - Cleaning up crime scenes for big money!#161 - How to spot red flags in eCommerce listings?

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