F.Y.I.

SI Partners’ new reports says marketing services mergers and acquisitions will ‘accelerate in 2025’

December 12, 2024 8:47

SI Partners’ Global M&A Insights Report 2024 says acquisitions and mergers within the marketing services industry is expected to grow next year.

The announcement:

The number of mergers and acquisitions (M&A) in the marketing services space is expected to accelerate in 2025, driven by Private Equity investment, according to the Global M&A Insights Report 2024 released by leading global M&A advisory firm SI Partners.

Drawing on over 1,150 transactions involving 125 of the most active buyers in the talent-based and tech-enabled services sectors, the report provides a focused analysis of trends driving strategic shifts and reshaping the global M&A landscape.

Key findings from the report:

Market Recovery Underway: While deal timelines now stretch between 6-12 months, momentum is building in the latter half of 2024, with strong performance driving seller activity and a rebound expected across all segments in 2025.

PE at the Helm: Private equity buyers remain the dominant force, representing over a third of M&A activity. Many PE platforms are looking to complete acquisition strategies delayed by market conditions, with 2025 shaping up to be a pivotal year.

AI’s Evolutionary Impact: AI remains central to growth. Companies moving beyond AI tools to embrace AI-operating models are positioning themselves as future leaders, with developers skilled in algorithm creation increasingly in demand.

Shifting Strategies Across Sectors: Legacy marketing groups like WPP are under pressure to replicate the success of Publicis with Sapient, while contemporary players focus on integrating data and tech capabilities. In technology consulting, Accenture leads with 26 acquisitions in 2024, reflecting a pivot beyond digital transformation. Geographically, the US continues to dominate, but Southeast Asia and the Middle East are emerging as key regions for buyers seeking digital transformation and tech-led services.

Julia Vargiu, director, SI Partners says of these findings: “The M&A market is recovering, but patience is essential. Sellers are driving activity where they can demonstrate strong 2024 performance, while buyers, particularly PE firms, are recalibrating strategies to focus on quality over quantity”

Looking to 2025, the report forecasts increased activity driven by improved 2024 performance and renewed interest from larger buyer groups. As the M&A landscape evolves, companies embracing innovation and AI are expected to capture the spotlight.

Michael Chin, director, SI Partners adds that foreign buyers continue to view Australia as an attractive APAC hub and with the ongoing economic and geo-political challenges in China, there is probably an even greater window of opportunity for Australia to remain in the spotlight.

Vargiu concludes: “The next year is set to redefine the M&A market. Larger players are rethinking strategies, whether consolidating or becoming acquisition targets themselves. Innovative businesses that are prepared to lead with bold moves and adopt cutting-edge AI will reap the rewards. This is a moment for market leaders to set themselves apart.”