2024 Mergers and Acquisitions Review: Major Headlines and Numerous Smaller Deals

In 2024, the world of public relations saw a flurry of merger and acquisition activity, with over 80 deals taking place. This trend continued from the previous year, with the number of deals doubling in 2023 and maintaining high levels in 2024.

Our research identified 99 transactions involving public relations firms, up from 96 in the previous year. More than a third of these deals were classified as micro-transactions, involving firms with less than $3 million in revenue, while 26% fell in the $3-6 million range. This means that the majority of deals in 2024 involved smaller firms with revenues under $6 million.

Independent PR firms and private equity investors were the key players in this M&A activity, making up 82% of the total transactions. According to David Blois, managing partner of M&A Advisory, private equity-backed consolidators have become dominant in acquiring quality consultancies, surpassing traditional large groups.

Another noteworthy trend in 2024 was the active participation of independent agency groups in strategic M&A to enhance their service offerings, particularly in digital and social media. Michael Lasky, chair of the public relations practice at Davis & Gilbert, noted that many first-time buyers, especially independent firms, were involved in smaller deals targeting firms with less than $6 million in revenue.

One of the most talked-about acquisitions of 2024 was KKR’s purchase of WPP’s stake in FGS Global, a corporate and financial PR specialist, valuing the firm at $1.7 billion. This deal stood out not only for its size but also for the high multiple of earnings involved, setting a new industry benchmark. KKR’s investment in FGS highlights the increasing importance of high-level strategic communications in today’s complex business landscape.

Overall, 2024 was a year of big headlines and plenty of smaller deals in the world of public relations M&A. Independent firms and private equity players led the way, focusing on accelerated growth and value-added services, while traditional holding companies seemed more focused on cost savings. It will be interesting to see how these trends evolve in the coming year.