Sustained digitisation in the UK economy has increased demand for online media and online communication. Deals are getting bigger, but regulation may still open up space for start-ups and smaller players. Traditional communications agencies, advertising agencies, and printing companies are looking towards new digital models to increase revenue. There’s also a drive to buy-in the latest tech solutions – and toward consolidation as a defence where tech might be perceived as a competitive threat.
Media, advertising, and communication companies are undertaking a great deal of consolidation. Offering a niche product is a popular strategy that also increases the incentive for companies to collaborate to offer the range of expertise demanded by the market. Marketing clients also appreciate a single point of contact when planning and implementing campaigns. All of this favours an increase in full-service marketing agencies. And the “war for talent” demands creative solutions to attract and retain the best staff.
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Faced with changes in consumer behaviour, traditional advertising agencies have adjusted their revenue model; printing companies are expanding into multimedia; and the number of digital (marketing) agencies has increased considerably. To offer the right expertise, businesses must choose between working with other organisations, or promoting themselves as specialists within a strictly defined niche.
The pandemic and the associated shift to online working have provided an extra stimulus for growth, while speeding up the shift to online publication. Well-established print titles are an attractive acquisition target, and the subscription model can provide a reliable revenue stream.
There is a lot of interest around acquisitions of media companies and communications agencies. We’ve noticed a trend among young entrepreneurs to target growth by acquiring another media company or advertising agency. Entrepreneurs are actively rolling out their buy-and-build strategies, with or without the backing of an investor.
Each year, more than a thousand entrepreneurs in this sector use the Marktlink Multiple to calculate their business value. We regularly guide the transaction process for media, advertising, and communication companies, and have unrivalled market knowledge and a substantial portfolio of potential buyers and sellers.
Marktlink can help you realise your ambitions. Always committed, independent and professional, we have a large national and international network, and detailed knowledge of local markets. Our specialists will use their knowledge and experience proactively to help you find the right successor or realise your growth ambitions.
Contact us now for more information.