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M&A transactions in the PR and marketing communications sectors were up 10 percent in 2024, according to Davis+Gilbert’s newly released M&A Activity Tracker.
Overall, 2024 saw 99 completed deals, up eight from the 91 that were completed in 2023. While private equity firms accounted for 34 out of those 99 deals (35 percent), their share of the pie was down considerably from the year before (45 deals, 50 percent).
On the flip side, it was a bull year for independent deals, which went from 34 (37 percent) in 2023 to 46 (47 percent) last year.
The number of different buyers also saw a significant jump—from 73 in 2023 to 79 in 2024.
In terms of revenue, companies that pulled in from $3M to $6M saw a big gain, rising from 16 deals (18 percent) in 2023 to 25 (26 percent) in 2024. For the firms with the most revenue (more than $25M), there was a slight upturn as well—from nine deals (10 percent) in 2023 to 12 (11 percent). The only revenue sector to see a downturn was firms with between $6M and $10M in revenue, which dropped from 17 deals to 11.
North America solidified its position as the M&A hot spot, going from 43 deals in 2023 to 54 last year. The Middle East, which didn’t even register on 2023’s chart, saw five deals in 2024.
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Sellers also had their top picks among the service offerings they wanted in the firms they bought. Digital & social media was cited by 41, followed by branding (35), content strategy & development (29) and media relations (27).
First-time buyers increasingly made their presence felt over the past year. The 43 first-timers accounted for close to half of all activity. About two-thirds of them (28) were independent firms and 15 were private equity or private-equity-backed firm.
“Understanding who these new players are, what they are seeking to achieve, and what made them attractive to sellers is critical as we look to 2025,” said Michael Lasky, partner and chair of Davis+Gilbert’s Public Relations Law Practice
The active M&A scene is reflective of an overall growth trend, according to Brad Schwartzberg, partner and co-chair of Davis+Gilbert’s Corporate + Transactions Practice. “Supplementing an effective growth plan through strategic M&A has proven to be very successful, and there are no indicators that this trend will pause in 2025,” Schwartzberg said.
Avoq has acquired SRA Communications, a Harrisburg-based PA shop focused on public health, banking, energy and public utilities.
What’s behind the trend of larger PR agencies acquiring smaller, specialized shops?
There are many reasons why an M&A transaction can reach an impasse, but a lack of willingness to negotiate will always result in a deal that’s dead on arrival.
Public Policy Holding Company has acquired Sacramento-based Lucas Public Affairs in a deal worth up to $22M.The initial $7.5M payment is composed of $6M in cash and $1.5M in stock issued to LPA owners.
Spectrum Science acquires clinical trial recruitment and engagement solutions provider Continuum Clinical.
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