More Influencer Rollups: Dulcedo Buys 2 Agencies
Chris Erwin
M&A and strategy advisory for creator economy | 3x founder and digital leader | Savannah real estate investor
Welcome to RockWater Roundup! Analysis to make you a better investor and operator in all things media x tech x commerce.
Hi readers,
Today we discuss Dulcedo’s acquisition of Influence+All Management and Sundae Creative, and the continued rollups of influencer agencies.
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Chris, Founder of RockWater
Dulcedo Buys 2 Agencies aka More Influencer Rollups!
Talent and ad agency rollups continue!
DULCEDO Management just acquired 2 Montreal-based businesses.
Below is breakout deal info…
TARGET #1: Influence+All Management
TARGET #2: Sundae Creative Agency
ACQUIRER: Dulcedo Group
领英推荐
DULCEDO DEAL RATIONALE
DEAL LOGISTICS
What else I find interesting… ??
Dulcedo worked with both I+AM and Sundae over the past 6 years. Highlights that M&A, particularly for service businesses, often happens between companies where there’s an existing historical relationship
No financial terms disclosed. Due to the smaller perceived company sizes and smaller scale M&A precedents, I estimate the deal structure included some cash upfront (up to 50%), and the rest via a 2-4 year earnout.
The earnout mix was likely majority cash plus some equity in Dulcedo parent co.?
I can’t see in public records if Dulcedo has raised outside capital, but they may have raised a small amount of debt or equity for growth or acquisitions.?
This deal adds to a track record of M&A.
In 2022 Dulcedo acquired C4G, a startup esports marketing agency. In 2016 they acquired 4249, an influencer relations agency, which led to bringing on now co-owner and head of influencer Ben Carter.?
Both companies were ~1 year old upon exit.
As a private business likely majority-owned by their top 3 leadership, Dulcedo could be positioning itself for an exit over the next few years.?
Their leadership is likely seeing the agency consolidation trends, where agencies are diversifying capabilities under one roof to better meet evolving marketer needs…and thus grab more client budget share.?
Even if no near-term exit plans, this at a minimum makes Dulcedo more competitive and helps bolster revenue growth. And makes them a standout in Canada. I applaud the deal!
Of note, I met CEO Karim a few months ago. I’m rooting for him and his team!
I'm the founder of RockWater Industries . We do financial and strategy advisory for media, tech, and commerce. From M&A and fundraising to consumer research and go-to-market planning.?
DM me on LinkedIn or email me chris @ wearerockwater dot com
?? Excellent breakdown! As Helen Keller once said, “Alone we can do so little; together we can do so much.” This synergistic approach in the influencer space mirrors the ethos of our upcoming project! ?? We believe in the power of collaboration too. If you're interested in cultivating growth & sustainability, consider joining our sponsorship for the Guinness World Record of Tree Planting. Let’s grow together! ?? https://bit.ly/TreeGuinnessWorldRecord #Sustainability #Growth #Community
?? "The secret of change is to focus all of your energy, not on fighting the old, but on building the new." - Socrates. ?? Great analysis on the influencer rollups! Looking forward to diving into the insights on growth plans and deal structures in your newsletter. #innovation #growth ??
thanks for the great write up!