Recession is driving new opportunities for Mergers and Acquisitions and consolidation in marketing services

Despite the recession bringing a range of challenges to the management teams of marketing services agencies, new opportunities for both M&A and consolidation among smaller and larger businesses in the industry still abounds, say corporate financiers at accountants and business advisors, BDO LLP.

Speaking at the firm’s recent Operators Club forum (for industry figures in marketing services) Jim Houghton, corporate finance director said: “We are entering a truly unprecedented period for M&A activity in the marketing services industry. Over the next few years, there will be a significant increase in consolidation between larger and smaller ambitious businesses that need scale, but don't want to abandon their entrepreneurship. For agencies like these (both buyers and sellers) there are opportunities in the industry that haven’t existed for years."

“As clients and their agencies shift the focus ever more from offline to online communications, we are seeing an increase in smaller, younger entrepreneurial digital businesses.  These agencies are the subject of huge interest from buyers looking for targets for M&A or consolidations.  Equally, many of these agencies have ambitions to acquire, rather than be acquired, and have the resources to do so.”

“M&A activity will also be driven by more agencies continuing to seek out strong financial partners.  This won't be about significant equity realisation for the sellers on day one, but a balance between de-risking now and crucially about finding a partner for the rest of the journey.”

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For more information contact Stephanie Aneto on 020 7893 3073, Email: stephanie.aneto@bdo.co.uk

Notes to editors:

BDO LLP operates across the UK with over 3,000 partners and staff. BDO LLP is a UK limited liability partnership and the UK Member Firm of BDO International. BDO international is a world-wide network of public accounting firms, called BDO Member Firms. Each BDO Member Firm is an independent legal entity in its own country. The network is coordinated by BDO Global Coordination B.V., incorporated in The Netherlands, with its statutory seat in Eindhoven (trade register registration number 33205251) and with an office at Boulevard de la Woluwe 60, 1200 Brussels, Belgium, where the International Executive Office is located. In the UK the Belfast Firm is operated by a separate Partnership known as BDO - Belfast.

BDO LLP and BDO - Belfast are both authorised and regulated by the Financial Services Authority to conduct investment business.

BDO LLP and BDO - Belfast are both authorised and regulated by the Financial Services Authority to conduct investment business.

BDO is an award winning firm.  Recent achievements include:

• Best Workplace UK - Financial Times 2008
• Audit Team of the Year – Accountancy Age Awards 2008
• Tax Team of the Year – Accountancy Age Awards 2008
• Corporate Finance Deal of the Year – Accountancy Age Awards 2008
• 100 Best Companies to Work For - The Sunday Times 2008
• The Women of Achievement Award –  Women in the City 2008
• Business Superbrand - Business Superbrands 2008