If you’ve been watching the news, reading the papers or listening to the pundits, chances are you may be convinced that we’re already in a recession. My opinion, after a full year of taking the pulse of the industry—via the annual surveys published by Gould+Partners—is that the PR industry will not be facing a recession….
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Category: Profitability
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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Compensation: Clients Who Fit the Bill
Healthy client relations are the lifeblood for PR agencies. Every client is unique, of course, with disparate needs, and PR agency owners often must take pains to provide those services, as well as a trust-based relationship. When it comes to effectively serving clients, one size doesn’t fit all. The same holds true for agency billing….
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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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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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VIDEO: Millennial PR Firm Owners Carve New Niche
We were chatting with a top PR executive recently when we mentioned the proliferating number of PR firms owned by millennials, or people born between the early 1980s and 2000. The executive—a real pro—expressed skepticism. That’s fine, we said. But we also stressed to this executive to keep a close eye on the space. While…
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Canadian PR Firms Best U.S. Firms on Revenue, Profitability
Canada is celebrated for many things. Maple Syrup, Niagara Falls, and Wayne Gretzky quickly come to mind. Now you can add profitable PR agencies to the list, particularly when stacked up against their U.S counterparts. Net revenue for Canadian-based firms grew a total of 21.8 percent in 2016, according to Gould+Partners 2017 PR Firm Net…
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Webinar: Millennials Eager to Lead, Willing to Learn
Millennials and older PR executives have a great deal to learn from one another. By collaborating more effectively they can bolster the value of their firm, break into emerging markets and land new clients. They just need to put their suspicions of one another aside and not let stereotypical thinking get the better of them….
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VIDEO: Transparency Key to Integration, Post-Sale
The celebratory dinner was a blast. The tapas were a joy to behold and the Merlot was ever so zesty. But now that the party is over, the real work of creative services transactions begins. The new teams have to commit to working together for what can often be a six-month transition process. It’s probably…
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Millennial PR Firm Owners Destined to Shake Up Industry
(This article originally ran on odwyerpr.com.) Millennial communicators can’t catch a break. As they occupy a growing part of the PR field, this demographic bears the brunt of withering criticism from some of their elders regarding their work ethic and general attitude. We frequently hear from older PR firm owners about the challenges of both…
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VIDEO: The ‘Build to Sell’ Mindset
Clients are satisfied with your firm’s work. You’re on the short list to land a new (and prestigious) account. The staff is growing nicely. They’re all positive indices for creative services firm owners. But, in order to maximize the profitability and overall value of their firm, owners need to adopt a ‘Build to Sell‘ mentality….
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The PR Trifecta: Growth, Profitability and Billing Rates Stalling
In light of this solar eclipse this week, the constellations have started to align for the PR industry. But it’s not a pretty picture, with all the major financial indices down and little sign that the industry has started to make headways in order to reverse the declines. Just check out the tale of the…
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