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Opportunities in the Events Sector for Cash Rich Investors.

Andy Robertson

With the events industry in turmoil in 2020 many venues and festivals face financial difficulties and despite financial help from various sources may still be faced with permanent closure. However, for cash rich investors interested in the events sector this represents investment opportunities.

Starting a new music festival or opening a new venue for live music events requires substantial investment, time and experience. For potential inventors looking to enter this lucrative market the barriers to entry have always been high and has previously been limited to large corporate events companies. For more independent investors now is the perfect time to build up their portfolio of venues and live events.

Struggling music festivals being faced with financial problems will welcome investment to secure their future and those willing to invest will potentially be buying into an existing brand along with a loyal customer audience base plus vendor and sponsor opportunities. For independent festival organising entities interested in attracting investors they will have to sacrifice control and future financial revenue in exchange for that investment. Deals can be made but the outcome will very much depend in the financial structure of the existing festival entity and the value placed on any assets and goodwill.

Venue operators are also struggling in the current coronavirus climate and landlords may not have been particularly helpful. For well-known leasehold venues the previous operators may have already disappeared and negotiations with landlords will surely favour the investor for rental terms. If they are lucky the venue may already be fully furnished and equipped too saving on additional investment costs. For freehold venue properties the owners may be willing to offload the venue as an asset disposal so for investors this would be a less risky approach as they obtain a venue with immediate asset value. Irrespective of a venue being leasehold or freehold investors should expect almost no revenue until the latter part of 2021 and so the investment is only suitable for those looking for future returns with no revenue in the foreseeable future. 

Aside from venues and music festivals that are currently up for sale there are also a plethora of events industry support businesses for sale too. Investing now in the events industry may be seen as a
high risk strategy but for those prepared to do their due diligence and look into the future potential for growth in financial returns it’s a risk worth taking. Entry costs into this potentially lucrative market have never been lower. Despite potential investors being seen as vultures by some, anyone willing to invest in the events sector now is potentially saving not only the business but, in many instances, securing jobs too.  

Investors new to the events sector can use an events management software platform like
FestivalPro for planning their future events. The guys who are responsible for this software have been in the front line of event management for many years and the features are built from that experience and are performance artists themselves. The FestivalPro platform is easy to use and has comprehensive features for managing the entire event process including venue management with specific modules for sponsors, artists, contractors, vendors, volunteers plus contactless ordering and the complete ticketing process.    

Photo by picjumbo.com from Pexels

Andy Robertson
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