Marketing Communications Firms See Consolidation Through M&A
For the past six months, the marketing communications industry has seen significant consolidation particularly among small businesses. For example,
The Hatcher Group acquired HORNE Creative Group
Yes& acquired P'unk Avenue, Beyond Definition, and Boldr Strategic Consulting
Creative Marketing Resources merged with ignite
MarCom Group acquired LMD Agency
And, we expect the trend to continue throughout 2022 and it'll certainly change the competitive landscape for you on future pursuits. What's driving the continued trend of M&A and consolidation within the industry? There are many reasons, here are a few:
Government continues to streamline acquisition. As government continues to leverage multi-award BPAs and IDIQs, companies are looking to gain eligibility to compete and are considering acquiring a company with access to these vehicles.
Talent pool is tight. It's extremely difficult to find, attract, and hire exceptional talent in this market. Companies are looking at acquisition as an option to further build out teams (and/or capabilities).
The whole is greater than the sum of the parts. In an extremely competitive environment, companies are looking at acquiring capabilities, past performance, relationships, and positioning to enhance their competitive positioning.
Owners looking to the next chapter. There are many companies that have thrived in this landscape for 20, 30, or 40 years! And, many of the owners are looking at what's next and succession planning.
We've been extremely active with conversations, both buy-side and sell-side, if this is something that is of interest feel free to reach out.