25 Influencer Rep M&A Deals + Challenges to 2024 Dealmaking
RockWater Roundup
RockWater analysis to make you a better investor and operator. Today we discuss the 25 influencer representation M&A deals since 2019, and the 9 deals for 2023 YTD.
25 Influencer Rep M&A Deals + Challenges to 2024 Dealmaking
It’s hard to keep up with the speed of talent rep industry consolidation.
This week Canada-based Dulcedo Group announced 2 acquisitions; influencer talent agency Influence+All Management, and public relations and influencer marketing agency Sundae Creative.
The I+AM deal makes 9 influencer rep M&A deals for 2023 so far.
That’s 25 total deals since 2019 🤯
(see infographic 👇 …NOTE: the 2023 column doesn’t include the Dulcedo deal yet, will have to update and share in a new post next week!)
That means this year already exceeds the deal volume of 2022.
And I have inside knowledge that a few more will be announced before December 31.
Will this persist in 2024?
Maybe, but a challenge I see…
There may not be many scaled, independent talent rep businesses that remain.
And the most active acquirers are venture / PE-backed management companies who want to acquire companies with a minimum critical mass of talent relationships and revenue.
Otherwise the work to get an acquisition done (it takes longer, and is harder to complete, than you think) is not worth it, and organic growth through accelerated hiring could be a better alternative.
But…
- Ex US geos likely have more scaled independent players which aren’t on many acquirers’ radars yet (we at RockWater Industries want to help change that)
- There may be more consolidation amongst subscale influencer rep firms, with goal to:
- better compete now that landscape of players is shifting rapidly and
- make them a more attractive acquisition target
- Tailwinds in influencer space (youth consumption habits, loss of cookie, decline of pay TV, et al) may drive a few of the best-positioned subscale businesses to hit scale in next 12-24 months…our team has been tracking this all year.
Very excited to see how this M&A market continues trending!
What do you all think?
Any deals we missed?
BTW, I’ve gotten many inbounds from founders and investors of talent rep and social agency businesses who want to explore strategic options. Whether seeking a sale, combining with others to seek scale, wanting to do rollups, or other.
This is a big decision. You need to be asking the right questions about the macro market, individual company performance, partner performance, and ownership goals before determining the right future path.
Glad to help you think through it. DM me on LinkedIn or email me chris @ wearerockwater dot com
