Chris Erwin’s Post

In my 20's I was wrong'd out of $250,000 by one of my earliest employers. But I'm glad it happened 😌 (I first shared this story last year. It deserves a re-share...) It was a business ethics issue. An agreement was violated, and I was taken advantage of. I had a gut sense it was going to happen, but I have a natural inclination to "assume the best". So I didn't protect myself, and the inevitable happened. I therefore had no nest egg to pay for business school. And I burned through all my savings just to pay for a small portion of my living expenses. I emerged from school, at the age of 30, with $225,000 in debt. And no assets. While many of my peers at the age of 30 were building upon wealth and investments made in their 20's, I was starting over. I was embarassed. And rarely talked about it. (This post is my first public note about it! 🤯) But it drove me to work harder, smarter, and to only go to into business with people I trust. I've made a lot of financial progress since then. But I still feel far behind where I "should" be! But that's my journey, and I'm finally finding peace in it. I'm grateful that I learned a big lesson early on. One that I know will save me millions of dollars throughout the rest of my career. I now always trust my gut. And I take business ethics very seriously. Have any of you ever lost $$ due to bad ethics in business? -- I'm the founder of RockWater Industries. We do M&A and strategy advisory for media, agencies, and creator economy. I've learned a lot of what works well in business, and even more of what doesn't.

The M&A spree by digital ad agencies continues! Last month Croud bought Vert Digital, its 5th acquisition since 2021. We wrote a deal analysis that discusses... • Deal value prop • UK-to-US capital flows • Rise of challenger ad networks • Croud's 5 acquisitions since 2021 • Growing interest in Atlanta-based agencies Click here to read our full analysis: https://lnkd.in/gHzT5egz —- I’m the founder of RockWater Industries. We do M&A and strategy advisory for media, agencies, and creator economy. My DM's are open.

Investor TPG bought Hollywood mgmt co Untitled Entertainment. Yet another PE shop getting into the talent rep game. TPG bought the stake from BOAT ROCKER, which invested in Untitled in 2019. Let's break it down... ---UNTITLED--- • Traditional Hollywood talent management co • Talent focus is film, TV, theater, digital media, and music • Founded 1999 by jason weinberg, Stephanie simon • Offices in NY and LA • 50+ employees ---TPG--- • Global investment firm • $224B of AUM • Founded 1992 • Experience in media / entertainment, talent mgmt, music • Prevously owned CAA, sold to Artemis last year • Investment led by TPG Growth, its middle mkt / growth equity platform ---BOAT ROCKER MEDIA--- • Global entertainment co • Creates, produces and distributes scripted and unscripted TV, animation, family content • Founded 2003 by David Fortier, Ivan Schneeberg • Went public in 2021 on TSX, raised $170M CAD • 51% owned by Fairfax Financial (purchased 2015) • History of growth through M&A ---BOAT ROCKER FINANCIALS (in CAD)--- • $0.97 stock price (down 25% YTD) • $31.9M mkt cap • 2024B adj EBITDA: $10M (down 70% YoY) • 1Q 2024 revenue: $51M (down 36% YoY) • 1Q 2024 adj EBITDA: $3.2M (up from YoY loss) • 2023 revenue: $475M • 2023 adj EBITDA: $33M • Cash position of $75M CAD (post sale) • No debt ---BOAT ROCKER PORTFOLIO--- • Unscripted: Matador Content, Proper Television, Insight Productions • Kids & Family: Jam Filled, Industrial Brothers • First-look deals: TeaTime Pictures, Bay Mills Studios, Jay Barchuel  • Talent and athlete-led startup incubator: Caravan • …and more like Realm (audio), Bustle Digital Group, etc ---UNTITLED / BOAT ROCKER HISTORY--- • Sold stake to Boat Rocker in 2019 • Details not disclosed, TBD if majority sale • Cash infusion to expand TV, film and digital production • Untitled got access to BR’s full-service global studio system ---TPG / UNTITLED DEAL DETAILS--- • Boat Rocker selling its Untitled stake to TPG • $51.6M CAD ($37.7M USD) • BR gets 8.8% stake in new TPG talent venture • Cash + equity transaction bonus paid to Michel Pratte ---DEAL VALUE PROP--- • Launch new TPG-led talent management company  • Acquire, invest in, and build a diversified global biz centered on talent mgmt, representation, and adjacent verticals • BR to use deal proceeds for content-first strategy - more owned IP in scripted TV, premium documentaries, animation, and potentially M&A ---POST DEAL OPS--- • Michel Pratte is CEO (15 yrs of BR leadership roles) • Eric Taitz is COO (at BR since 2018) • Untitled and BR will maintain commercial relationship WHAT I FIND INTERESTING & DEAL INSIGHTS… As a public company, we have access to financial data. But unlikely they breakout Untitled -- will do some sleuthing / guestimating for my newsletter later this week. TBD if I can estimate deal valuation multiples. -- I'm the founder of RockWater Industries. We do M&A and strategy advisory for media, agencies, and creator economy. My DMs are open.

Twas a good week, save for some woodpecker issues... Below are updates on RockWater, real estate, and personal goings on 👇 ---M&A--- • Signed a new IM client, prepping finances for sell-side convos • Negotiated seller terms for upfront payment, earnout, and LT comp plan • Spoke to 5 growth PE investors on agency buy-side deal • Sent 2 sell-side proposals: SE Asia "culture agency", and digital agency x MCN ---STRATEGY--- • Finances review for SE Asia gaming client • Pre-engagement DD on political / fundraising agency client • Mkt research and peer benchmarking for new AI x prod tool ---REAL ESTATE--- • Starting to re-engage sellers, I'm seing better prices • Requested termite bond against savannah portfolio for "bulk discount" • Carpenter bees are laying eggs in fascia, which attracts woodpeckers -- will now replace during tenant make-ready ---PERSONAL--- • Ate 12-hour smoked brisket • Watched a lot of fireworks • Comforted dog during said fireworks • Celebrated birth of my bro's baby daughter -- I'm the founder of RockWater Industries. We do M&A and strategy advisory for media, agencies, and creator economy. On the side I invest in rental real estate, and spend time with family and loved ones. My DMs are open.

Jumping into July 4th holiday like… 🇺🇸💦

We explain the math on a new travel media M&A rollup. Plus best practices for newco formation and capital preservation. All in our newsletter below on LOST iN 👇 as well as... • Fundraise details • Newco value prop • Travel guidebook revenues • Jukin / TMB venture deal waterfall • 1st M&A deal and implied valuation Sign up for our newsletter to get more analysis like this in your inbox every week: https://lnkd.in/gsCaH6eM —- I’m the founder of RockWater Industries. We do M&A and strategy advisory for media, agencies, and creator economy. My DM's are open.

My VidCon was a 54 hour sprint. The highlights... • Hosted 244 guests for Tue's "Night Before Vidcon" party • Met 13 M&A advisory client prospects • Caught up w/ 8 former coworkers • Had irl time with 2 colleagues • Hung w/ 11 clients As an introvert / extrovert, that's a lot for me! Explains why only Vidcon'd in Anaheim for 30 hours, from Wed afternoon to Thu night. (it's also because I have a lot of client work, and personal / work reasons took me to the east coast early Friday) But I always walk away from Vidcon fulfilled -- pride in seeing how far the creator economy has come, knowledge through convos with builders and capital allocators, and joy in celebrating with friends and clients, old and new. Yet another reminder why RockWater Industries is ramping up its event game (as hosts and guests) in 2024. ...looking to 2025, I'm a bit unsure how I'll fit in Cannes the week prior, but will sort out those details later 😅 Lastly, enjoy some photos below from our Night Before Vidcon party. Thanks again to co-hosts Michael Booth and James Creech, and to our party sponsors Tipalti, Greenberg Glusker LLP, Fundmates, Merrill Lynch, and Linguana. -- I'm the founder of RockWater. We do M&A and strategy advisory for media, agencies, and creator economy. My DMs are open.

Former Jukin Media execs launched LOST iN, a travel media newco. Includes media M&A rollup strategy, starting w/ a legacy guidebook publisher. Let’s break it down… ---LOST iN OVERVIEW--- • New travel media brand targeting younger, online-savvy “premium economy” traveler • Will aggregate content from prominent online travel creators • Target audience is “young working professionals looking for a comfortable, yet authentic travel experience” • Founded by Jonathan Skogmo, Mike Skogmo, Anton Reut • Founders are former execs of Jukin, which sold to TMB (Trusted Media Brands) in 2021 (reported at 9 figures per Forbes) • Will pursue M&A rollup of travel media brands ---SEED INVESTMENT--- • $4M seed fundraise • Led by MaC Venture Capital • Other investors: BDMI, Pitbull Ventures  • Angels: founders of Hawke Media, Skybound, Kombo Ventures, Pocket.watch, Fullscreen ---1ST ACQUISITION--- • LOST iN, a travel guidebook publisher founded in 2014 • Produced 25 global travel books in 50 countries ---NEWCO VALUE PROP--- • Travel enthusiasts to get entertaining and informative travel content • “Revolutionize travel coverage for urban professionals” • Help advertisers reach highly affluent and desirable travelers  • Travel forecast to grow 5.8% annually through 2032, more than 2x overall economy • Legacy travel media doesn’t cater to digital-natives, ripe for disruption • Pair LOST iN guidebooks D2C biz w/ ad-supported digital video biz • Build events, memberships, and more to add value to travel community  • Founders learned how to build and monetize large audiences from Jukin days ---WHAT ELSE I FIND INTERESTING ABOUT DEAL--- Raised money for media rollup, in a difficult fundraising environment. Many digital execs talk about rollups, but few are getting access to financing to execute. LOST iN's team track record at Jukin, longstanding investor relationships, and vision stand out amongst peers. I'm very curious to new acquisitions that are in the works, and how much new capital will be required for additional M&A. TBD when those other deas will be announced. What are the deal terms for LOST iN? I may have to do some math in my upcoming newsletter to estimate revenue, valuation, and deal terms. Lastly…CEO Jonathan and I may be planning a premium exec event for September, stay tuned ;) -- I'm the founder of RockWater Industries. We do M&A and strategy advisory for media, agencies, and creator economy. My DMs are open.

My story for how I got into creator economy M&A 👇 And why I love *unsexy* service co's...

At VidCon. Our regular deal coverage resumes next week. Until then, today's newsletter below 👇 has links to... • The origin story of RockWater, going back to my early YouTube MCN days • The toast I didn’t get a chance to make at Tuesday’s Night Before Vidcon party • Highlights from our M&A and strategy advisory, plus some headaches from my side gig of rental real estate investing • A handful of deals I want to write about soon like LOST iN's $4M fundraise, and Create Music Group's new $1B valuation —- I’m the founder of RockWater Industries. We do M&A and strategy advisory for media, agencies, and creator economy. My DM's are open.