We want to address the worries some members have expressed and welcome the opportunity to host a forum for members in order to go into more detail. In advance of that discussion we want to address some of the misinformation which has been circulating.
The deal, negotiated by Council, ensures that the fair will continue for years to come. All BADA members, if they exhibit, benefit from the protections agreed in the contract including:
a. 7% discount on stand rates
b. Rights to continue exhibiting
c. Rights regarding location in the fair
d. Any increase in stand rates is limited for BADA members
e. Guarantees that BADA members cannot be charged more than non-members before the 7% discount is applied
f. BADA members retain the freedom to use your own stand builders for fit out
g. Vetting to be carried out by BADA to BADA standards
h. Promotion of BADA and its members in the fair
i. BADA’s logo to be represented on the front of the marquee
j. Conditional rights for BADA to establish new events and fairs
k. BADA has one of three board members
l. BADA retain 20% of the shares in the company.
A widely used and accepted way of valuing a business is Price-Earnings (PE). In the fair/exhibition market an average PE is 6 with a high of 9. BADA achieved a PE of over 12 and in addition, Council has secured protections for BADA members.
Council’s view of the sale was about more than just maximising revenue. We also wanted to partner with people who are focused on improving the fair and more importantly protecting and offering advantages for BADA members.
What has been achieved with this deal meets all of these criteria and provides additional protections and discounts, retained in perpetuity.
Council agonised over whether to include the wider membership in the decision making process of the sale. In the end though they felt giving notice that the fair was for sale would immediately jeopardise the upcoming fair and compromise the value.
We need look no further than the current fair market to appreciate the challenges all fairs face. As one member who’s been in touch since the sale of the fair was announced said: “The bough which doesn’t bend, breaks.”
The harsh reality is that the BADA fair, for many years, has attracted a diminishing number of BADA members to exhibit. Without the support of members, it was only a matter of time before the association would have faced the reality of possibly losing the fair altogether.
The sale of 80% of the shares to Thomas and Harry offers a really exciting future for the fair, BADA members are protected and the fair will benefit from Thomas and Harry’s unmatched enthusiasm, experience and networks.
This deal provides BADA with the resources to invest in initiatives which will help grow membership, create commercial opportunities for members and promote their stock to global audiences.
Following the story in last week’s ATG, BADA has received eight requests to participate in the fair and another from a dealer who’s asked about joining BADA.
Co-signed by Michael Cohen, BADA Chairman, Robert Young, BADA Vice-Chairman, Anthony Outred, BADA Treasurer and Kaye Michie, BADA fair Chair.
