In the specialty of public relations, communications, and creative service agencies, we at Gould+Partners support the recent prediction that 2015 will prove to be a very active year in the world of M&A. According to KPMG and Mergers & Acquisitions magazine in their recent survey, “…buyers are paying a premium for targets that will allow them to realize long-term strategic goals and gain an advantage over the competition.” Very true! We have already seen the pace picking up over 4th quarter 2014.
Based on our recent deals in play and ongoing communication with buyers & sellers, targets that are commanding a premium are quality firms. QUALITY being the operative word. These are the ones that utilize sector-specific benchmark data and management tools to run their business. Here are a few additional predictions based on what we are seeing:
- Buyers will be more open to considering quality, target firms in smaller, geographic markets
- Under-the-radar, quality sellers will emerge and gain market share as they combine synergies with larger buyers
- Quality sellers will more effectively achieve their long-term vision via strategic acquisitions, and they will tremendously improve their salary positions in the short and long-run
- Buyers will continue to seek long-term synergistic partners in their acquisition targets, and will welcome ongoing relationships with their seller partners well beyond the earn-out period
Read more about the KPMG survey here: http://ww2.cfo.com/ma/2014/12/ma-pros-expect-active-deal-scene-2015/