An Opportunity to Acquire the “Future of Marketing Analytics.”
The world of digital marketing has reached a critical decision point. For years, digital agencies have espoused their data-driven / innovative / tech-savvy credentials, while behind the curtain the work is done by people. An agencies’ DNA is that of a services business with every strategic plan, compensation model and sales channel geared toward services – thus they have little incentive to become efficient if it means reducing services revenues.
Myth #2: I am getting buyer calls all the time, this will be easy
We often see smaller businesses receiving weekly outreach from interested buyers. This Buyer interest tends to come from financial, rather than strategic, buyers and is driven by “getting a bargain from an unsophisticated seller” – and interest quickly fades when the likelihood of a bargain disappears. In Myth #1, we introduced information asymmetry, and it’s most visible in these “interested Buyer” calls.
Myth #1: I founded a company; I can easily sell it myself.
The reality is you could probably do a lot of things that you’re not qualified to do (e.g., represent yourself in a legal case, change your oil, or something that seems more straightforward such as rewiring your home). In the end, the savings don’t outweigh the risks, which is why we hire experts with the knowledge, experience and tools to address specific requirements. So, in the end, you could certainly take on M&A, but at what risk and ultimately at what cost?
M&A: If You Buy It, You Integrate It.
Far too many acquisitions across industries, geographies and sizes fail to meet their post-acquisition targets. According to a commonly cited Harvard Business Review metric, 70-90% of acquisitions fail, in part, as a result of poor integration execution. We often hear of a high-priced acquisition within the Digital Marketing, Analytics, Content or Media sectors struggling and then being unceremoniously absorbed into the parent company.