2024 round-up and 2025 planning | Issue #19 | The M&A Insider
Dear Readers,
It’s been another rollercoaster year for agencies and the wider industry, with continued economic and political uncertainty hampering growth.
The year started with optimism in the air, following a difficult 2023, but the elections in the UK and US and conflicts in Ukraine and the Middle East, reduced confidence in the market, and therefore marketing investment.?
Public markets showed good growth, especially the Nasdaq (up over 30%), and private equity (PE) were a lot more active. There is a vast sum of capital to be deployed by PE, but company performance and lack of quality opportunity have limited significant growth in deals.
In terms of M&A, there has been a lot of activity, but deals are taking longer due to buyers being cautious, and spending longer on due diligence.
It’s been a year of consolidation, restructuring and reinvention for agency groups as they grapple with AI, and how to build more efficient business models and propositions.
Brands have been looking at what they can do in-house, and the right agencies to outsource their marketing activity to.?
For 2025, there remains uncertainty about marketing spend and the outlook for agencies.
The key economies in Europe are struggling, and the UK is battling with higher taxes implemented by the Labour government and low economic growth coupled with inflation which will squeeze consumer spending.
The US will provide both opportunities, with more M&A activity as US acquirers will look to expand into Europe, and also threats as higher trade tariffs and protectionist government policies will impact trade.
Agencies in the UK need to manage higher staff costs (rise in NI) and pricing pressure from clients, and this requires detailed business planning around their future organisational charts, technology and service offering proposition and how to make themselves indispensable to their clients.
We expect to see much more M&A in the UK market in 2025, as both smaller and medium-sized agencies look to consolidate to build out new capabilities and drive growth.
Wishing you all a lovely break with your family and friends.
All the best
Mark Sainthill
News
Top M&A Deals in 2024
2025 Planning
Top News for Cactus in 2024
Holiday Reading & Listening Recommendations
Podcast:?What’s Next for AI?
Playlist/mix:?3 hour Disco party mix by Jockellion?