M&A Transactions in MarComms Sector Increased by 10% in 2024
Merger and acquisition (M&A) activity in the public relations and marketing communications sectors showed a promising increase of 10% in 2024, as reported by Davis+Gilbert’s latest M&A Activity Tracker. In total, there were 99 completed deals last year, up from the 91 deals in 2023. It’s interesting to note that private equity firms accounted for 35% of these deals, down from the 50% share they had in the previous year. On the other hand, independent deals saw a significant uptick, rising from 37% in 2023 to 47% in 2024.
The diversity of buyers also expanded, with 79 different buyers participating in 2024, compared to 73 in 2023. In terms of revenue distribution, companies earning between $3M to $6M saw an increase from 18% in 2023 to 26% in 2024. There was a slight growth in deals for firms with revenues exceeding $25M, going from 10% in 2023 to 11% in 2024. However, companies earning between $6M and $10M saw a decline from 17 deals to 11.
North America remained the hotspot for M&A deals, with 54 deals in 2024, up from 43 in 2023. The Middle East, which didn’t register any deals in 2023, saw five transactions in 2024.
Buyers had clear preferences when it came to service offerings, with digital and social media being the most sought-after at 41, followed by branding (35), content strategy and development (29), and media relations (27).
A notable trend was the rise of first-time buyers, making up almost half of all activity in 2024. Of these, 28 were independent firms, and 15 were private equity or private-equity-backed firms. Understanding the motivations of these new players is crucial for the industry’s outlook in 2025, according to Michael Lasky, partner at Davis+Gilbert. Brad Schwartzberg, partner at Davis+Gilbert, highlighted that strategic M&A plays a vital role in achieving growth and success, indicating a continued upward trend in M&A activity in 2025.
