Emerald Holding's Strategic Review and Its Implications for the B2B Events Sector

Emerald Holding, Inc. (NYSE: EEX) has entered a strategic review process following multiple acquisition inquiries, a move that underscores both the company's pivotal role in the B2B events sector and the sector's broader transformation. As the largest U.S.-based organizer of B2B events, Emerald operates a portfolio of trade shows, conferences, and hosted buyer platforms that serve thousands of small and medium-sized businesses. The company's decision to evaluate strategic options-advised by Goldman Sachs & Co. LLC-has sparked speculation about its valuation potential amid a resilient and rapidly evolving industry according to reports.

Industry Resilience and Technological Transformation

The B2B events sector is undergoing a profound shift, driven by hybrid event formats, AI-driven engagement tools, and sustainability initiatives. By 2025, 63% of event organizers plan to increase investments in virtual events, with hybrid formats now accounting for 74.5% of event professionals' long-term strategies. Technological advancements, such as AI-powered matchmaking and immersive AR/VR experiences, are enhancing attendee ROI, with 79% of attendees more likely to make a purchase post-event. Meanwhile, sustainability is reshaping budgets, with eco-friendly practices becoming a standard operational consideration.

Financially, the sector is robust. The U.S. B2B trade show market alone reached $15.78 billion in 2024, projected to grow to $17.3 billion by 2028. Globally, the B2B events market is forecasted to expand from $49.58 billion in 2024 to $83.10 billion by 2034, reflecting a 5.3% compound annual growth rate. These trends position B2B events as a critical driver of lead generation and sales pipeline growth, with 72% of attendees more likely to buy from exhibitors they meet at trade shows.

Emerald's Valuation Metrics and Strategic Position

Emerald's 2025 financial guidance-$460–$465 million in revenue and $122.5–$127.5 million in Adjusted EBITDA-highlights its operational strength. Second-quarter results, with $105.5 million in revenue and $24.4 million in Adjusted EBITDA, further validate its momentum. However, the stock has declined 24% over the past six months, raising questions about undervaluation.

To assess this, we compare Emerald's potential valuation to industry benchmarks. While specific P/E ratios for the B2B events sector are unavailable, M&A data provides context. The median EV/EBITDA multiple for the B2B Services sector in 2025 stands at 8.1x, with private equity buyers often paying premiums for scalable, high-margin assets. Applying this multiple to Emerald's projected $125 million EBITDA midpoint suggests an enterprise value of approximately $1.0–$1.04 billion. If Emerald's current market capitalization falls below this range, the stock could be undervalued relative to its strategic assets and industry growth trajectory.

Emerald's position as a leader in a $17.3 billion U.S. trade show market further strengthens its appeal. Its curated portfolio of events, coupled with a strong balance sheet and recurring revenue streams, aligns with the sector's demand for "contract depth and margin visibility"-key drivers of premium valuations in M&A.

Risks and Considerations

Despite these positives, risks remain. The strategic review process is non-binding, and no transaction is guaranteed. Broader macroeconomic pressures, such as inflation and shifting corporate budgets, could also impact event demand. Additionally, while hybrid events are growing, they face challenges in replicating the in-person networking value that drives B2B ROI.

Conclusion: A Strategic Opportunity Amid Sector Growth

Emerald's strategic review offers a unique lens into the B2B events sector's valuation dynamics. With industry growth projections, technological tailwinds, and a strong balance sheet, the company is well-positioned to capitalize on its leadership role. If the board secures a transaction at or above sector multiples, shareholders could see significant upside. For investors, the key variables will be the outcome of the strategic review and Emerald's ability to leverage hybrid event innovations to sustain its 2026 growth trajectory.