M&A activity returns to the marcoms sector in 2011
February 2011
A resurgence of M&A activity in the marketing communications
sector has quickly materialised and looks set to continue in the
year ahead.
In the last two months, December 2010/January 2011, Results
International has closed deals to a total value of £100 million,
the busiest start of the year since 2007. Completed deals include
Latitude/Call Credit, BGB/Four Communications, DLKW/Lowe and Total
Healthcare Group to United BioSource Group (UBC). In addition
Publicis has announced a deal to purchase Chemistry with Results
International acting as advisors.
"Social media will definitely be under the spotlight this year
says Results International managing partner," Keith Hunt. "We
believe the Techlightenment/Experian deal a few weeks ago may well
signal the start of a social media agency land grab. There is
plenty of demand but a limited number of independent players to be
sold and deals will probably be done at lightning speed."
Andy Collins, Results International senior partner who advised
Chemistry on their sale to Publicis adds: "We are definitely seeing
an appetite for agencies like Chemistry who have put digital at the
heart of an integrated offer accompanied by best-in-class creative
and strategic skills. Such agencies will continue to command high
prices, unlike those digital agencies with a commoditised offer who
sit lower down the food chain, operating on smaller margins and
whose services can easily be outsourced to cheaper markets.
Based on such a buoyant start to the year, Results predicts that
heads of independent agencies who have been delaying a sale should
and will respond to the improving environment.
-- ENDS --
Contact:
For further information about Results International, please
contact:
Velvet Integrated PR
Tel: 020 8996 1800/07710 316759
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About Results
Results International Group is a specialist consulting and
corporate finance business, which works exclusively in the global
marketing communications industry. Results was founded 20 years ago
in London to advise owners of agencies on creating, building and
realising value in their business. The international business was
started 14 years ago and over 250 UK and International M&A
transactions have been managed by the firm and its partners.
www.resultsig.com