In early 2007, Results International and Willott Kingston Smith conducted their annual survey of over 700 senior executives at leading marketing communications firms concerned with corporate development prospects for industry mergers and acquisitions.
The key findings are:
- Open media (blogging, podcasting etc) is expected to be the fastest growing field of internet marketing at the expense of search marketing amongst the online disciplines.
- Web/interactive is the discipline expected to grow the fastest followed by database marketing and direct marketing.
- The M&A market continues to be strong with increased activity anticipated in 2007. Buyers expect to be more active than sellers.
- Web/interactive specialist businesses will be the primary focus for acquisitions, then data
base marketing and direct marketing. - Acquisitions should be driven with a view to securing new skills (possibly digital?) with critical mass and improving operating margins seen as of secondary and tertiary importance.
- Buyers' and sellers' valuation expectations are unusually close - suggesting buyers are becoming closer to understanding sellers current expectations.
- Both sellers and buyers believe the time to do a transaction is now. Sellers are very slightly more willing to defer a sale to consolidate growth in their own business and find the right deal.
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