- PE firms represented more than half of the acquisitions in the advertising and marketing space in 2022.
- PE interest in the sector remains strong, industry experts said.
- Insider identified 14 PE firms active in the advertising and marketing space over the past 12 months.
Private equity interest in the advertising and marketing space is expected to remain strong in 2023, defying a global IPO market that’s practically shut and a massive slowdown of strategic dealmaking.
PE and PE-backed buyers represented 56% of acquisitions in the digital media, martech, digital agencies, and content and production industries last year, according to the advisory firm Ciesco.
“The PE focus has been heavily on digital transformation with business models that have high levels of repeat and scalable revenues, sticky client retention, good cash flows and are based on technology-enabled or data-driven activities,” said Chris Sahota, Ciesco CEO.
A lot of new PE firms are also preparing to make investments in the advertising and marketing space in the coming months, said Amir Akhavan, managing director of the investment bank BrightTower.
Improved technology and ability to measure media have made companies in the space more reliable investments, he said.
Insider identified 14 of the most active PE firms in the space, listed alphabetically, based on deals made in the last 12 months and conversations with bankers, industry executives, and investors.
Representatives for the PE firms either declined to comment or didn’t respond to requests for comment unless otherwise noted.
Did we miss any other major PE deals in the advertising, marketing, and communications space from the last 12 months? Let us know by emailing Lara O’Reilly at loreilly@insider.com