Service Type: Deal Sourcing
Project: Vendor Acquisition Strategy and Execution
Introduction
With our expertise in Mergers and Acquisitions in the Digital and Analytics space, plus extensive knowledge of the US market, we’ve been the perfect strategic partner for Audience Collective, a UK-based group of insight-led, digital marketing agencies looking to break into the American market.
Context
Following the success of the UK operation, Audience Collective was looking to make an impact in the USA. To do that, they wanted to replicate their winning model out here: offering the full set of communications services by creating a group of individual insight-led, digital marketing agencies, each with its own specialist service area.
Rather than opening brand-new, specialist agencies that take up significant time and resources, the strategy was to acquire profitable agencies via acquisition that already has a foothold in the market.
The Problem
To deliver on this big ambition, we had to find just the right kind of acquisitions across multiple specialisms. Every single specialist agency had to match up not just with Audience Collective’s ambitious and creative way of working, but also with its vibrant culture.
Understanding culture
What was on the target agency’s website didn’t always reflect the culture in reality. Truly understanding the real culture, to get a good fit, wasn’t always easy and needed further conversations to really get to grips with what kind of agency the prospect was.
Differing opinions
There was some disconnect between the executives. We were dealing with varying specialisms, and different business leaders – this could therefore naturally lead to some stakeholders wanting to take targets further, and some saying otherwise. A major part of our role was to balance these differing opinions, while ensuring the strategic vision was adhered to.
Shifting criteria
Finally, the criteria we established prior to our prospect targeting weren’t always 100% set in stone, and sometimes Audience Collective surprised us with their choices. For example, the prospect might not fit with our revenue requirements but may have had a perfect personality or an innovative approach, which therefore warranted a further conversation.
In order to meet the challenge of finding targets that would naturally slot in with Audience Collective’s ambitions, work style, and culture, we worked very closely with both our partner and the prospects.
Our solution
We were conscious that technology would only take us so far with regard to prospecting the right companies for Audience Collective. So, we ensured that we leaned on our deep understanding and expertise when identifying the list of potentials. This was the true “art” of matchmaking in our eyes.
This meant that we worked closely with Audience Collective, and we asked the right questions to establish the needs of the business. This allowed us to get under the hood of the client, and the state of play in their industry.
After we had established the groundwork, we then moved on to the prospecting stage. We targeted companies against our pre-established set of criteria that we developed with Audience Collective. During this stage, we began to ask a few key questions to ensure our direction was on track. We then screened these companies whilst working closely with the client when we needed direction. It was incredibly important for this to be a collaborative partnership from start to finish.
The final stage was all about hitting the right touchpoints. With our expertise, we were able to initiate up to 20 high-quality‘ discovery calls’ a week, where we got to know the targets on a deeper level. If both parties were interested in taking things further, we could move on to the next stage where we began working through the finer details of the acquisition.
In summary, a strategy of M&A can be very technical and reasonably scientific however we have developed the “art” of matchmaking the right buyer to the right seller. This has given us a competitive advantage with regard to knowing the goals of both parties involved.
Results
Our strategy is ongoing, but we have had some great results so far. We’ve had excellent traction to date, delivering several high-value targets to Audience Collective.
A key win is that based on our success so far, the strategy has been altered and the ambition increased. Initially, the goal was to simply begin to develop a presence with the acquisition of a few key USA agencies. Now, the strategy is to create a business of direct comparison to the UK, if not bigger – effectively doubling the size of the business.
Stephen Kennedy, Executive Chairmain from Audience Collective has said:
“Vine have been invaluable as a partner. Using a deep understanding of our business, they’ve implemented a strategy that has already delivered exceptional results, leading us to largely increase the ambition of our initial objectives. They have been diligent and intelligent, tailoring their approach based on our specific requirements. We are all very excited about what is coming next.”
Summary
When it comes to Mergers and Acquisitions, we’re experts, across a wide array of industries and clients. We don’t just rely on the science but consider the importance of artfully matchmaking clients with the right partners. Reviewing, learning, and honing our process allows us to gather information on what works and what doesn’t. This rigor plays a major part in our success and strengthens our results.
We are also experts in the digitalization of marketing which has given us a huge advantage. Our understanding of this space allows us to take advantage of opportunities, such as the fact digital is such a thriving industry right now, and to understand the challenges.
