Private and equity firms, family offices, consulting practices and ad agencies will try to acquire PR agencies.
Despite COVID-19 impacting PR agencies, many of them performed exceptionally well during the crisis. While the pandemic will still influence the market in 2021, categories like the airlines, cruise ships, tourist destinations will fare well, as per The Stevens Group.
With clients reinitiating spends on marketing, PR and branding, more clients are expected to hire PR agencies. As PR agencies seek to grow, more agencies can be acquired by larger organisations. Mid-sized PR agencies will acquire smaller brands to widen bandwidth and services.
Roll-ups are expected to surge, wherein PR agencies will sell part of their equity to outside investors and use the capital to acquire agencies. Budgets for PR agencies will also rise due to deferred campaigns, and services offered will be diversified to boost cashflow.
[4 minute read]