Content (Film, TV & Music)
FTI Consulting engagements touch virtually every aspect of the global entertainment industry today. We understand the implications of changing distribution platforms and how to assess the strategies, processes, procedures and practices that determine a company’s ability to realize its value proposition. Working on behalf of companies, investors and creditors, we have deep experience across the broader industry and a particular expertise in film, TV and music content. A major dimension of our team’s experience is valuing and advising on the positioning and structuring of transactions where intellectual property rights are a key driver of value.
Strategy Development & Implementation
The dedicated Media & Entertainment team at FTI Consulting has an in-depth knowledge of content origination, networks, carriage and delivery across media platforms around the world. Our professionals come from within the industry and, as a result, have a thorough understanding of the strategic, operational, technological, financial and customer acquisition and retention issues facing cable and satellite operators, broadband network and over-the-top providers. Combining this expertise with a strong foundation in content strategies, we understand how entertainment segments interrelate today and how they will in the future.
The FTI Consulting approach to performance improvement includes revenue enhancement in addition to cost controls and efficiency. Our professionals evaluate key operating metrics that drive value, processes and procedures that impact decision-making and evaluate external trends that influence revenues. Armed with facts and our experience in best practices, we develop and help implement appropriate strategies and processes to improve results.
Merger & Acquisition Integration/Carve Outs
Pressure on management to deliver synergies quickly is growing as expectations for value creation in M&A transactions become more transparent. While different types of acquisitions require different responses from management, they all share the imperative of needing expert-driven advisory from specialists who know both the industry and the merger & acquisition integration process. With expertise in a dozen industries and experience in more than 100 integration projects, our specialists partner with management to ensure adoption of best practices, maintaining continuity of customer experience, and focus on analytics and culture.
Forecasting, Valuation & Transaction Advisory
Our valuation and industry experts understand the complexities of forecasting assets and businesses in dynamic markets. Our professionals bring a unique depth of financial analysis, industry insight and practical experience to all our valuation and advisory projects. We have advised on over 1,100 entertainment and media projects representing nearly $130 billion in asset value across the filmed entertainment, television content, music, video game and new media sectors. Financial opinions and valuation services include:
- Fairness opinions
- Solvency opinions
- Collateral valuation opinions
- Intellectual property and intangible asset valuation opinions
- Going concern valuation opinions
Financial Reporting Opinions
- Purchase price allocation and goodwill impairment (ASC 805)
- Portfolio valuations for private equity funds, hedge funds, banks and other capital market constituents (ASC 820)
- Incentive compensation, options and “cheap stock” (ASC 718)
- Revenue recognition for multi-element licensing arrangements (ASU 2009-13)
- Derivative valuation opinions (ASC 815)
Tax Planning and Reporting Opinions
- Estate and gift tax opinions
- Enterprise, minority interest and non-marketable minority interest for business and asset valuations
- Equity/share-based incentives and compensation for services (IRS Sec. 409A)
- Financial, strategic transaction advisory support
- Forecast preparation assessment
- Strategic alternatives and transaction structuring support
- Transaction due diligence (forecasts assessments and development, independent valuations)
- Transaction support for capital raising and M&A efforts
The challenges companies face may be strategic, operational, financial or market driven, but, inevitably, they will lead to loss of investor support and confidence if the challenges are not handled optimally. Investors and owners engage FTI Consulting for interim management assistance through critical periods or to achieve specific critical goals. Our interim managers have extensive experience advising and collaborating with boards of directors and executive teams to succeed in an interim management or turnaround scenario.
Equally, our turnaround and crisis management teams represent a broad array of experience covering the entire C-suite. They know how to adapt quickly to manage risk, reduce costs, improve liquidity and communicate effectively with stakeholders in various parts of the entertainment industry.
Many engagements are short term, requiring a fully staffed, highly skilled interim management team to execute quickly on a business plan. Others are long term and require one or two professionals with specific, identified skills.
FTI Consulting has led the restructuring league tables consistently, thanks to our team’s in-depth, industry-specific operational experience and world-class financial expertise. We approach restructuring with industry-specific knowledge plus bankruptcy and reorganization skills. Our professionals have a highly respected track record of stabilizing overleveraged companies, resolving balance sheet issues, assessing operations, restructuring debt and maximizing value to constituents.
Our restructuring team helps clients improve liquidity, conserve cash and manage working capital with services that include:
- Contingency planning
- Stakeholder negotiation
- Divestiture analysis
- Debtor-in-possession and exit financing options
The Media & Entertainment industry team within our Strategic Communications practice includes sector experts with experience representing a broad range of organizations and companies, from start-ups to multinationals. Our clients benefit from the team’s relationships with key influencers to provide a comprehensive suite of integrated communications services, including:
- Corporate and employee communications
- Financial communications
- Public affairs
- Creative engagement
- Strategy consulting and research
- Crisis communications