Price tag of The Monkeys sale to Accenture was $63m, AFR reveals
The deal for Accenture Interactive to buy creative agency The Monkeys was worth $63m, it has finally emerged.
The price for The Monkeys – the most successful independent creative agency in the country – has been the subject of intense speculation since it was sold in May.
But today’s Australian Financial Review reveals that the value of the deal was $63m, with most of the money going to the three co-founders Mark Green, Scott Nowell and Justin Drape. According to the AFR, another four staff were also shareholders – ECD Fabio Buresti and MD Matthew Michael plus David Park and Nicholas Jackson from sister design agency Maud, which was also sold.
The Monkeys co-founder Mark Green, presenting to this year’s Mumbrella Awards jury
That multiple is extraordinary. Would love to know how long the principals have been contracted for.
That multiple is ridiculous. Almost makes Photon / Enero look smart…
Good on them.
Good work, real clients.
Always authentic.
Glad they got a really good price – it’s good for everyone
Nice one…The Monkeys team (if you can get it)…that’s four times what it is actually worth in the market at a 18 times multiple earnings…. Accenture just bought Photon or was it Enron…. I wouldn’t bank on the second tranche….but enjoy the money upfront while you can….well done boys…
mmm, well done guys, you do good work and have built a very good reputation in a relatively short period of time. Make no mistake it is avery tough market and this business has performed very well.
However 17 times is quite simply ridiculous……..I suggest the detail around the earn out would be a good read
Story goes the consulting companies base the multiples on revenue not profit unlike holding companies. They supposedly buy client opportunity not bottom line profit to drive share price.
In an industry when you are only three phone calls from disaster…that is crazy…. good luck if you can sell tone of these guys… I think it should say $63m valuation during the deal…as the ‘price tag’ suggests it is fixed, which would be very rare for the industry in such deals…due to future years earnings averages…. given the previous year profits…the multiple over the last two years in much higher….crazy stuff…. Accenture has plenty of money to burn…clearly….
and in the Monkeys case….they’re only 1 phone call from Telstra away from disaster.
The founders also released this video in response
https://www.youtube.com/watch?v=kMFJBd40Awo
🙂
Lol
Ego > Sense
The monkeys pass the good blokes test. They can trusted. Congratulations all.
Remind me to NEVER take business advice from Accenture. What’s their line of work again?
those numbers are not right – either the sale cost or the P&L are vastly different
Not sure whats more shocking…..that Accenture would even consider paying such a ridiculous multiple, or that Australia’s best creative agency only makes $2M profit a year?! Load in the regional costs that multinational agencies have to pay, and they wouldn’t even make a profit!
profit is $3.49m
Congratulations, in an industry that is allegedly dying, its great to see a local success story..
They’re worth what someone will pay for them and that is always the case for every acquisition. If Accenture felt they needed what they believed only The Monkeys had, then that’s what they are prepared to pay. That’s what they’re worth.
Good on them.
Too true.