M&A Activity in the Public Relations Sector Likely to Remain Strong According to New Research from Davis & GilbertThe Associated Press
NEW YORK--(BUSINESS WIRE)--Nov 8, 2018--Each year, the law firm of Davis & Gilbert compiles data on mergers and acquisitions in the public relations and integrated marketing communications sector based on publicly available deal activity and its extensive experience in the market. The firm’s latest report identified 67 consummated deals in the 12-month period ending October 1, 2018.
Notably, the report data indicates a highly fragmented marketplace with no fewer than 57 different buyers involved in these transactions. The predominant takeaway is that competition in the sector is fierce, coming from an extensive array of buyers.
Davis & Gilbert further noted that, not surprisingly, almost all (92%) of respondents to a recent survey of independent PR firms said that they have been approached by a potential buyer in the last two years. In fact, over half the firms surveyed (54%) thought it was “likely” or “very likely” that they would sell by 2021, indicating that deal activity is likely to remain strong for the foreseeable future.
Significantly, Davis & Gilbert’s research further reveals that:
Brad Schwartzberg, co-chair of the corporate practice group at Davis & Gilbert remarked that, “The high volume of deal activity in which independent PR firms bought other firms represents a dramatic change from just a few years ago. Historically, exit opportunities for the $3 to $4-million-dollar PR firm were few and far between, but with the recent trend of buying by independents, these smaller firms are now driving a significant amount of the M&A activity within the PR industry.”
Schwartzberg further noted that, “many mid-sized PR firms have realized they simply can’t build it fast enough, and with technology changing so rapidly, it can be more economical – and certainly faster – to buy rather than build.”
Additional key findings from Davis & Gilbert’s M&A outlook and report include:
About Davis & Gilbert
Davis & Gilbert LLP is a strategically focused, full-service mid-sized law firm of more than 130 lawyers. The firm is widely regarded as the #1 law firm for the marketing communications industry and has practices focusing on Advertising, Marketing & Promotions; Digital Media, Technology & Privacy; Entertainment, Media & Sports; Intellectual Property; Corporate; Insolvency, Creditors’ Rights & Financial Products; Taxation; Labor & Employment; Benefits & Compensation; Litigation; Real Estate and Private Client Services. Founded over a century ago and located in New York City, D&G represents a wide array of clients – ranging from start-ups to some of the world's largest public companies and financial institutions – throughout the United States and internationally.
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CONTACT: Davis & Gilbert LLP
KEYWORD: UNITED STATES NORTH AMERICA NEW YORK
INDUSTRY KEYWORD: TECHNOLOGY OTHER TECHNOLOGY PROFESSIONAL SERVICES LEGAL COMMUNICATIONS MARKETING PUBLIC RELATIONS/INVESTOR RELATIONS
SOURCE: Davis & Gilbert LLP
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PUB: 11/08/2018 02:31 PM/DISC: 11/08/2018 02:30 PM