There are a lot of To merge mergers and acquisitions going on in the agency world. Small and large agencies seem to be joining forces more and more. Investors are also showing more interest in this market. How does this affect the business strategy of agencies? And what does it mean for your agency if you want to remain independent?
Simplicate conducted research among more than 90 agency owners, agency managers and project leaders at agencies (5-100 fte). This shows that almost half of the agencies (48%) experience the impact of the increasing number of mergers and acquisitions. More than a quarter (27%) of the agencies are also open to an acquisition; some of them are already in discussions or have just completed a merger. In this article I will further discuss how agencies act in view of this market development and share practical tips to strengthen your market position.
Stronger market position
What is the attraction between agencies that makes them merge or that makes smaller agencies get acquired by larger ones? A larger agency provides a stronger market position and the opportunity to serve clients even better. They want to join forces and focus more on their distinctive quality. A large proportion (65%) of agencies say that an acquisition offers an opportunity to specialize more.
Another reason for the growing number of mergers and acquisitions is that more and more investors have become interested in the market. When you merge multiple agencies, you have relatively lower overhead costs, you can work more efficiently and therefore scale up faster. The fragmented landscape offers opportunities: in the Netherlands, many small agencies are active, which means that an acquisition can lead to significant growth.
50% remains consciously independent
Half of the agencies consciously do not join forces with peru email list 3 million contact leads other agencies. They work hard to strengthen their own position in the market. But they do feel the hot breath of the competition. For example, two out of five agencies notice that it takes more effort to attract and retain talent as a smaller, independent agency. The remaining 23% wait and see, observe the market and wait.
Also read: 3 market developments that agencies should respond to [research]
To merge or not: what do agencies do – image by simplicate
How do you strengthen your office?
Whether you are thinking about a merger or acquisition, or about the impact of color on customer behavior: lessons from bol, starbucks & mcdonald’s strengthening your current position in the market: the financial health of your company is what makes or breaks it. When your finances are in order, you have the space to achieve your goals. You can invest more in training, so that you aleart news become that innovative partner for your customers. You can hire new colleagues or free up more time to bring in big names for a strong portfolio.
That is why my tip is to look at the results of your agency with an outsider’s eye. Suppose you were to take over your own agency: what information would you need for that? Are you able to retrieve the right figures in no time? And do you know how to interpret these figures.