Agency and Marketing Solutions Summer Report 2024

Agency & Marketing M&A Activity

Agencies & Marketing M&A by Year (In Billions of USD)

Total Deal Size in ($B) # of Deals

710

603

Annualized

Low marketing spending and a decline in M&A activity were notable in 2023 as global M&A volume fell to the lowest level since 2004. However, despite shifting market demands and consumer preferences, the industry shows resilience, and these lows could indicate pent-up demand for deals in 2024. Key trends: • Surge in Total Deal Value: Total deal value experienced a surge in 2024 following significant declines in 2022 and 2023. This increase was driven by a sharp rise in large transactions during Q2 2024. As the marketing industry grows more complex, mergers and acquisitions have become strategic imperatives for marketing firms navigating this intricate landscape. • Increased Martech Activity: Despite a decline in new product launches and feature updates in 2023, the use of AI has led to an upswing in 2024, resulting in significant MarTech M&A transactions. • Non-Traditional Buyers: Companies like publishers, sports leagues, and digital media businesses are entering the M&A market seeking complementary agency services.

39.5

427

421

414

213

9.3

54.4

37.0

6.4

20.3

2020

2021

2022

2023

YTD 2024

M&A Volume by Quarter (In Billions of USD)

Total Deal Size in ($B) # of Deals

197

168 164 173

154

148

130

124

120

120

165

98 97 102 108 105

99

81

2.1 2.0 2.3 2.9 9.4 9.7 6.3 28.7 6.5 8.9 1.7 20.0 3.2 1.0 0.5 1.6 3.9 16.4

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2020 2021 2022 2023 2024

Source: Pitchbook as of June 2024. Data consists of transactions where deal value was disclosed.

20

Made with FlippingBook - Share PDF online