"While it has been an overall gloomy year, data points out that the M&A deal volumes in the agency sector have gone up hugely. Interestingly this growth trend has been quite binary: for the agencies that have performed well during Covid-19, there is a lot of interest and potential demand, whereas, for those that were perhaps struggling to keep growing, the interest is much less."
"The pandemic has surely changed how the deals are being actioned, evaluated, and closed - all in the post-pandemic virtual world. The flurry in the acquisition space has also brought the conversation back to the comparative performance of the larger network agencies with the smaller digital setups. Sharing his experience of being a witness to a lot of inbound deal flow, Scott Spirit, chief growth officer and executive director at S4 Capital said, "there is too much att""
M&A deal volumes in the agency sector increased despite an overall gloomy year, with activity concentrated among agencies that performed well during COVID-19 while struggling agencies saw little interest. APAC independent agencies attracted new buyers despite smaller sizes compared with Europe and the US. Independent agencies must prepare to present their businesses differently to potential growth partners or acquirers than they would to clients or talent. The pandemic shifted deal evaluation and closing into a virtual environment. The acquisition surge renewed comparisons between large network agencies and smaller digital setups, producing heavy inbound deal flow and selective buyer demand.
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