Description

Summary

In this episode of the Inorganic Podcast, hosts Ayelet Shipley and Christian Hassold, co-hosts of the In/organic Podcast, discuss the current state of mergers and acquisitions (M&A) in the agency sector, focusing on Q2 activity. They explore market trends, deal multiples, notable acquisitions, and the importance of strategic fit in the current M&A landscape. The conversation also touches on the valuation of tech-enabled agencies, the luxury market's unique characteristics, and expectations for future market activity in Q3 and Q4.

Takeaways

• Deals still happening, but the market is pickier.
• Timing exits for the next 2021-2022 won’t work
• Seller valuation expectations still mixed bag
• Digital services continue to grow in demand.
• Strategic buyers are looking for very specific needs (culture fit, capabilities, clients, and case studies)
• Q3 and Q4 should see more deal activity based on deal flow signals

Chapters

02:25 Q2 Market Trends & Valuation Multiples

06:24 What Makes a Deal Stand Out in Q2

09:16 Media, AI, and Buyer Control Strategies

11:29 Captiv8 and the SaaS-Driven Valuation Uplift

14:24 Should Agencies Rebrand Themselves as SaaS?

17:35 Luxury Roll-Ups and the Together Group Model

20:29 Market Shift: From Roll-Up Volume to Strategic Fit

24:39 Resetting Expectations Around Multiples

28:33 Q3 & Q4 Deal Flow Outlook

30:45 Previewing Themes for the Next Episode

Connect with Christian and Ayelet

Ayelet’s LinkedIn: https://www.linkedin.com/in/ayelet-shipley-b16330149/

Christian's LinkedIn: https://www.linkedin.com/in/hassold/

Web: https://www.inorganicpodcast.co

In/organic on YouTube: https://www.youtube.com/@InorganicPodcast/featured

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