, /PRNewswire/ — M&A activity in digital marketing services is accelerating, as anticipated by JEGI CLARITY in July. Over the past two quarters, deal volume exceeded the quarterly average of 300 transactions over the last 7 years.
Notable deals, such as ECI’s acquisition of Croud, highlight this trend. Looking ahead, we expect 2024 M&A levels to align with 2023, following the record-breaking momentum of 2021 and 2022.
PRIVATE EQUITY HAS AN ACTIVE ROLE IN DRIVING SECTOR CONSOLIDATION
PE represented 32% of YTD M&A activity in digital marketing services. Key attractions for investors include the market’s impressive growth prospects – with the market projected to increase from £4.3bn in 2023 to £14bn by 2032 (CAGR of 14%).
SCALE AND EXPOSURE TO TIER 1 MARKETS ARE KEY VALUE DRIVERS IN DIGITAL MARKETING SERVICES M&A
Valuations are influenced by several factors:
- Differentiated Proposition: Agencies with scalable, Tech and AI-driven, or specialized services command higher valuations.
- Scale: Our data suggests that size matters when it comes …