A change in ownership can be a scary proposition for an established public relations firm or creative agency, but it can also be a tremendous opportunity for growth. The key is to manage your firm’s reputation, while providing the new owner with space to grow into their new role. At Gould+Partners, we have helped numerous…
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Category: Mergers & Acquisitions
As a consulting firm that specializes in PR Agency Mergers & Acquisitions, Gould + Partners is uniquely positioned to offer valuable insights and expert advice to public relations, media and creative agencies who are considering buying, selling or merging with another firm.
Our M&A experts share strategic advice on a variety of topics including valuation and benchmarking statistics, merger and acquisition negotiations, exit strategy planning, post-merger integration, tips for a successful acquisition, when is the best time to sell your PR firm, and much more.
To find out if external growth is right for you, as well as how you can expand the profitability and attractiveness of your agency, and identify buyers or sellers with the greatest potential for your firm, contact Rick Gould or call (212) 896-1909.
Preparing to Buy: When to start looking for a PR firm to acquire
If you are looking to acquire a public relations firm, you should begin your search approximately 12 months before you want to close the deal. This lead time allows for the extensive valuation process, financial due diligence, and transition planning required to successfully merge two agency cultures and client rosters. PR Firm Mergers & Acquisitions…
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Reasons Why a PR Firm Might Turn to an Acquisition
If you’re looking to grow your PR agency, acquiring another firm may be your best strategic option. At Gould+Partners, our experienced team of M&A advisors and public relations industry experts can help you evaluate the viability of an acquisition for your firm specifically, but generally speaking, acquisitions allow PR agencies to grow faster, smarter and…
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Importance of Courtship with Buyer and Seller, then Moving Forward
The first meeting between prospective buyers and sellers is second in importance only to the closing meeting. The first meeting is about chemistry, culture, and fit. There are several crucial issues that need to be resolved early on. 1. 1 + 1 = 3. The fit of the two companies must create a strategic advantage…
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Overcoming an Impasse in M&A Transactions
In an M&A transaction, the ultimate goal should be to resolve any impasse that arises through an approach to negotiate based on the interests of the buyer and seller. You should always be willing to negotiate. You must be willing to sit down with your adversary—preferably face to face—and attempt to make a deal that…
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Managing Your Benchmarks
The key to managing your PR agency to earn a 20% or higher operating profit is to set the correct benchmarks for your key cost and expense categories. To begin, let’s look at some of the basic ratios you’ll want to understand and monitor. How to target your revenue/cost benchmarks: Net Revenue: 100% (Not “Gross”…
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Good Deals/Great Deals
A ‘good’ deal is when each party feels relatively positive about the outcome. Making each party emerge a winner is the essence of a ‘great’ deal. Often, conceding to the other party what they want will not impact what you want in a material way. I always put myself in the place of the person…
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The Earn-Out Model Works!!
The earn-out model has been the gold standard for the 20+ years that I have been doing mergers and acquisitions. It is a proven, fair model used by all major PR firm buyers from holding company firm buyers to mid-size firm buyers to bolt-on firm buyers. The appeal and benefit of the earn-out model is…
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Psychological Buy-in Critical for Exit Strategy
Amid the dramatic and ongoing changes within the marketing communications industries is the accelerating rate of M&A transactions within the PR field. PR firm owners, including heads of boutiques, smaller shops and mid-size firms, are giving more serious consideration to selling. Many of these owners are products of the baby-boom generation and would like to…
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Post-Merger Integration Plan Critical for Long-Term Success
The PR transaction has closed. The buyer wires a multi-million-dollar transfer into the seller’s bank account. The staff members of both buyer and seller are notified. The press release announcing the deal has been distributed across the business wires online, sprinkled with quotes regarding a “win-win” for both firms, and, naturally, “new digital and marketing…
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The Value of Human Capital
The term “Human Capital” is offensive to some. They see it as treating people as material objects. I hope to build a greater appreciation that the character, competence and commitment of a firm’s professional talent has a major impact on its valuation in an M&A situation. That acknowledgement, together with other recommendations, are intended to…
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Padilla Acquisition by Avenir Global
Montreal/Toronto-based holding and management company Avenir Global- (parent company of NATIONAL) has acquired Padilla. We are delighted & honored to share that we introduced & facilitated the merging of two great firms. Rick Gould, Managing Partner said, “We worked closely with Avenir Global (then NATIONAL) in…
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