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 on LinkedIn and YouTube
Ayelet’s LinkedIn: https://www.linkedin.com/in/ayelet-shipley-b16330149/
Christian's LinkedIn: https://www.linkedin.com/in/hassold/
In/organic on YouTube: https://www.youtube.com/@InorganicPodcast/featured
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