M&A activity in the marketing and communications industry surged in the years following the pandemic—but how has the landscape evolved since? In our latest webinar, we brought together two experts for a conversation exploring acquisitions from the acquiring company’s point of view.

Rich Davis, Chief Financial Officer at ACC, shared firsthand insights from leading industry acquisitions, including ACC’s recent addition of DKC to its portfolio. He was joined by John Burns, Managing Director at Clare Advisors, an M&A expert who has brokered dozens of marcomms agency deals and advises both buyers and sellers across the industry. Together, they explored what defines a strong acquisition in today’s market and how companies can set teams up for long-term success.

The takeaways: 

• Buyers prioritize agencies that enhance capabilities, broaden market access, and bolster their footprint in high-growth industries.
• Three key tips to prepare for a future sale: build a strong leadership bench, diversify clients, and prioritize retainer-based revenue models.
• Leadership alignment matters: shared values and stable management teams signal long-term potential.
• That said, cultural diversity is a strength. Combining different agency cultures drives innovation, and the goal is for teams to collaborate without losing their unique perspectives. 
• Operational maturity and scalable infrastructure (systems, processes, governance) are essential indicators of readiness.
• Agencies with strong second-tier management (and even the employees under them) and predictable financial performance stand out as long-term investments. 
• When negotiating, retainer-based revenue is more attractive than project-based, offering more predictable margins.
• Pro tip: don’t rush post-deal integration—set a clear timeline and assign accountability for key tasks. 
• Strategic growth doesn’t require large acquisitions—starting small can yield outsized impact and valuable learning.
• High-potential growth sectors include financial services, entertainment, and influencer, especially high-volume influencer (50+ campaigns monthly) and content 
• Deal activity has rebounded since September following a quiet summer period tied to tariff announcements.
• A recent shift in the space: former agency leaders are entering the advisory space, guiding smaller firms through the buy/sell process. 
• M&A consolidation across the marcomms industry is expected to continue, with smaller agencies increasingly acting as acquirers.
• One common seller pitfall right now has to do with taxes. Post-COVID, with teams spread across states, employers need to ensure they are following tax protocol in each of these cities and states. 
• Agencies driving the most growth are the ones actively investing in visibility—getting their teams out in the market, building relationships, attending events—rather than staying in a post-pandemic “work-from-home” mode.