At the May 2025 ANA Financial Management Meeting, Founder and Managing Partner of Evalla Advisors, Lori Murphree, provided an overview of the current mergers and acquisitions (M&A) landscape, with a specific focus on the marketing services sector. Her presentation explored how recent M&A activity has influenced the industry and will continue to do so in the future. Additionally, she addressed the advantages and challenges associated with consolidation, examining its potential impacts on agencies, clients, and employees. Download Please enable JavaScript in your browser to complete this form.Email * Submit

As Q1 2025 closes out, M&A activity in the marketing sector is gaining renewed momentum. With interest rates holding steady and the cost of capital stabilizing, both strategic and private equity buyers are re-entering the market — but with a sharper focus on capabilities that drive measurable, tech-enabled outcomes. AI-powered marketing, first-party data strategy, and performance-led creative continue to be among the most sought-after capabilities. New macro pressures, however, are shaping deal strategy in unexpected ways. The recently introduced U.S. tariffs, announced in April, are beginning to ripple across the marketing supply chain, from content production to media pricing. Buyers are becoming more surgical — focusing on firms with resilient models, domestic vendor networks, and the ability to support clients navigating this new cost environment. Key M&A Trends Shaping the Marketing Industry: 1. Strategics Return, Focused on Integration and Efficiency: Holding companies like Publicis and WPP are back in acquisition mode, but with tighter criteria. The focus is on data, content automation, and omnichannel delivery — enabling greater margin control and client stickiness in an environment where client budgets are being re-evaluated in light of tariff- driven cost increases. 2.  Tariffs Create Pricing Pressure and Strategic Realignment:  The new 10% baseline import…

Gnomon: Acquired by Groupe EDH For more than 25 years, Gnomon has stood as a pillar of excellence in digital-arts education, referred to as the ‘MIT of visual effects’ by Fast Company. Offering a robust range of educational opportunities, including a Bachelor of Arts degree, a two-year certificate program, and more than 100 specialized courses, Gnomon has consistently prepared students for success in the entertainment, gaming, and production, industries. With an impressive placement rate of 95%-100%, Gnomon alumni can be found at leading studios across the globe. Gnomon sought a partner to help propel its legacy into the next era. The Evalla team members conducted a deeply personalized and competitive process, working closely with Gnomon to identify what mattered most: preserving its independence, safeguarding its cultural values, and finding a partner capable of enhancing its reputation and opportunities for growth. Evalla targeted a carefully curated group of public and private institutions. After several meetings, discussion and negotiations with various parties, Evalla advised and Gnomon chose a For-Profit-French Institution, Groupe EDH, as the most ideal acquirer. Groupe EDH represented not just a financial match but a perfect strategic and cultural fit. Backed by Rothschild & Co’s Five Arrows Principal Investments, Groupe…

As we enter Q1 2025, the M&A landscape in the marketing industry has begun to pick up speed once again. Strategic shifts, such as the increased focus on digital transformation, the integration of creative and performance marketing, and the expansion of data-driven capabilities, are reshaping the industry. Companies are prioritizing solutions that blend creativity with measurable outcomes to meet evolving client demands. Holding companies and private equity firms are leveraging acquisitions to address operational gaps, scale their capabilities, and drive future growth. Emerging sectors like retail media networks and AI-powered marketing solutions are becoming focal points for investment, signaling where the industry is headed in 2025. This newsletter explores the key drivers of M&A activity, major transactions, and trends shaping the future of the marketing landscape. Key M&A Trends Shaping the Marketing Industry: Holding Companies Ramp Up Acquisitions: After years of focusing on integration, holding companies are beginning to become more active, acquiring firms to compete with consulting giants. Areas of focus include digital transformation, CRM, AI, and other technologies that deepen operational capabilities and deliver end-to-end solutions that will increase their competitiveness against the consulting companies. PE Investments Surge in Independent Agencies: PE-backed platform investments are on the rise,…

End of the deal: How to avoid common post-LOI pitfalls “Time kills all deals… but rushing gives away your leverage.” – Evalla Advisors Founder & Managing Partner, Lori Murphree Investment bankers and M&A advisors tend to emphasize the steps leading up to an LOI:  boosting value, identifying the right partner, preparing financials, and structuring deals. The post-LOI phase, during which parties manage due diligence, negotiate working capital, cash & debt definitions, and navigate the various components of closing the transactions and true-up process, often remains overlooked. Yet this phase requires as much rigor as the first part of the process: After all, nearly 50% of deals fail to close even after an LOI is in place. Some of the most common reasons deals don’t close after an LOI is signed include: Cultural and strategic misalignment: The buyer and seller may realize they are not the right fit after further scrutiny. Funding issues: Buyers could lack the necessary funds to close the deal if seller does not sufficiently diligence the buyer. Missed projections: Sellers might fail to meet projected financial targets. Client losses: The seller could lose a key client during the negotiation process. Uncovered risks: Due diligence may reveal risks…

The global value of AI in marketing is expected to reach $24 billion in 2024–and $105 billion by 2030. Evalla Advisors’ “Artificial Intelligence in Marketing” reportexplores how it’s grown over the past 12 months, what factors are driving the demand, and where it’s headed. Increasing demand for advanced analytics, automation, and enhanced customer experiences have fueled the AI marketing boom, as have the proliferation of digital data and the evolution of consumer expectations. AI is now considered a critical component of any brand or agency’s modern marketing strategy. The report covers such topics as how the landscape has evolved over the past 12 months, Generative AI trends, ways in which major advertising agencies and brands are using AI, compensation models, and ethical concerns over copyright. It also examines future plans for the technology. Download Please enable JavaScript in your browser to complete this form.Email * Submit

We are reaching out to you to share our recently released newsletter on M&A trends and insights in the marketing industry. In this edition, we delve into digital media and marketing M&A activity by sector alongside insights into how generative AI investments fueled private markets. We also provide a detailed analysis of recent marketing-services transactions, explore growth trends in publicly traded holding companies, and offer predictions for marketing industry trends in 2024. We hope you find this newsletter valuable and welcome any questions or requests for additional information. Download Please enable JavaScript in your browser to complete this form.Email * Submit

Evalla Advises OKRP on Merger with Barkley Leading independent agencies Barkley and OKRP have merged to become BarkleyOKRP. This new entity combines two of the fastest-growing agencies in the country, both with proven track records for creating work that sparks with consumers and drives out-sized results for clients. With more than 650 employees across five offices in Chicago, Kansas City, Denver, New York and Pittsburgh, BarkleyOKRP is now one of the largest independent agencies in the country. Evalla Advisors acted as lead strategic M&A advisor to OKRP on the transaction. “In a world where the choice is often ‘big holding company’ or ‘small independent,’ BarkleyOKRP provides an alternative that marries the best of both worlds. We affectionately call it ‘big indie,’” said Jeff King, CEO of Barkley, who retains that role in the new agency. “OKRP has built a creative powerhouse and Barkley, in addition to its own award-winning creative product, has built a foundation of modern consumer expertise. Combined, BarkleyOKRP clients will receive the very best of strategy and creativity in an agency that has broad capabilities and significant scale.” “Barkley’s operation and leadership were instantly impressive – but what really locked this partnership is our mutual belief that…

In today’s rapidly evolving digital landscape, Ai has emerged as a transformative force, revolutionizing the marketing industry. From enhancing customer experiences to optimizing campaign strategies, Ai’s potential is vast. In our Ai Trends Report, we will explore key insights from our comprehensive analysis to provide a holistic overview of how Ai is reshaping marketing. We will delve into the benefits of Ai for marketing agencies, the potential threats it poses, integration pathways, and its impact on M&A activities. Additionally, we discuss market trends, including the consolidation of Ai companies, and examine the organizational disruptions executives are grappling with in their quest to harness Ai’s power. Join us as we navigate this transformative journey and unlock the full potential of Ai in marketing. Download Please enable JavaScript in your browser to complete this form.Email * Submit