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FEATURED STORIES ABOUT THE PUBLIC RELATIONS PROFESSION

WRITTEN BY ART STEVENS & RICH JACHETTI
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By Art Stevens and Rich Jachetti 25 Oct, 2023
Love Is In The Air Oct 2023 | Written by Art Stevens of The Stevens Group for CommPro Five Aspects to Consider When Being ‘Romanced’ by a Prospective Buyer As a PR agency owner, possibly the most critical decision you’ll make is when to sell your firm eventually. This experience can be quite daunting for anyone, especially if you’re not accustomed to the complexities of the M&A process. It can also be overwhelming, arduous and emotional if you’re not fully prepared for what’s ahead. If a prospective buyer is courting you, it’s essential to first and foremost understand what they are looking for in your agency. When you know what motivates them to buy, you can take carefully measured actions to reap monetary benefits in a potential sale and ensure a sound cultural match and positive chemistry among leadership on each side. What to Think About During the Courtship Period To decide if the M&A journey makes sense for your agency, it’s crucial to start by answering some key questions. For example, is now the right time? More importantly, are you ready ? Has your prospective buyer made other acquisitions? If so, do they have references you can talk to about their experiences before, during and after the process? In my many decades of consulting experience in the PR agency M&A space, I always stress the importance of developing a positive working relationship between the seller and buyer right out of the gate – it’s truly the key to success . After all, an agency sale is more than just about the money; it’s about creating a healthy, positive and productive environment for the seller and their team that ultimately empowers. Here are five considerations that can help you determine if it’s the right time to sell, especially if you’re currently being “romanced” by a prospective buyer: 1. Ensure that both firms’ synergies, collegiality and overall quality of life are sympatico . Synergy is a key element of a sale – it can exude a collaborative atmosphere and breathe new life into an agency. A newly formed or evolved PR firm – through consolidation and a solid united vision – can allow for greater purchasing power, reduce overhead, allow for better access to innovation and improved technology and potentially bring down the cost of debt and other benefits. 2. Make a list of questions to ask . Have your questions for a buyer lined up before the first meeting. Here are some ideas to get you started: · Why are you interested in this this acquisition? · What is your firm’s niche? · How do you see our roles in the future? · What is the typical deal structure? Is it based on earn-out? Or will it be an up-front payment and an earn-out? · What has been your growth pattern over the past handful of years? · Where do you get funding for deals? · What changes will go into effect immediately? · Will my agency and brand be absorbed into your agency, or will it remain independent? · Can employees on both sides expect a round of layoffs, or can we negotiate a grace period? · Will leadership be required to stay on for a specific length of time to onboard the new owners/management? 3. Do your due diligence – check that the buyer isn’t running a pressure cooker ! Show up armed with background information on each prospective buyer ahead of time. Never hesitate to ask them the same tough questions they’re preparing to ask you about your business. Study their portfolios (and any portfolio gaps) via their websites and SEC filings (if publicly traded). Ascertain how you can best position your agency and its services with everything they have to offer. 4. Determine if your firm is intended to be a meaningful, carefully thought-out strategy within the prospective buyer’s future . In other words, determine whether the prospective buyer is worth investing your time and effort into. The buyer’s goal should be to develop a foundation for a business discussion, impress you, keep you interested in learning more and demonstrate their full commitment to the proposal. 5. Show genuine interest in learning more about the buyer . Don’t be detached or impersonal; you will probably turn the buyer off immediately. Reflect in your voice and body language that you are interested in learning about their agency and getting to know them as a person. Also, show them that you’ve thoroughly done your research. Remember that you are building rapport with the buyer, so first impressions mean everything at this point. The Bottom Line There’s no arguing that the M&A process can be daunting. With so many considerations and steps to take before, during and after the process–and unanticipated obstacles along the way – it’s essential to have the proper support . Enlisting the guidance of an experienced facilitator like a team member from The Stevens Group can help make the process go smoothly, protect you and your employees and get things done the right way the first time around. Sellers need someone who won’t slow the deal down by working to anticipate every imaginable (yet unlikely) risk and obstacle . Whether you aspire to retire, hike, bike, golf, spend more time with family or move on to your next professional venture, a proper strategy with the support of a professional can help you sell your agency successfully –and avoid potential headaches. Creating realistic expectations in two areas – time and money – is also important. Whether you’re actively working with a prospective buyer to sell your agency as soon as possible or slowly considering a future where you sell, I wish you the best of luck. And remember to be patient. If you want to sell, you want to ultimately sell to the right buyer for your situation . You want the culture to be as close to perfect as possible – and I believe that’s the most critical element. _________________ ART STEVENS Art Stevens is managing partner of The Stevens Group, a firm that specializes in facilitating mergers and acquisitions in the PR and digital/interactive space. https://theartstevensgroup.com
By Art Stevens 25 Oct, 2023
Selling Your PR Agency? Your Employees Might Thank You Fri., October 13, 2023 By Art Stevens Let’s face it – many of us are familiar with the numerous advantages to an owner when selling a PR agency. There’s the appeal of transferring your firm to new owners and generating liquidity while also allowing you to remain involved in the business if you desire. The process also presents an opportunity to maintain your involvement with the agency you worked so hard to build – in an evolved role – serving as a consultant or advisor to help the buyers ease into the transition. But are there any obvious benefits to your loyal team members and employees? Understandably, many employees feel anxious about all the changes – there’s uncertainty, fear of job loss and potential culture clashes to all worry about. Beyond the palpable change of being shifted around and restructured internally, the continued performance and loyalty of your remaining employees depend on how your M&A process is implemented. In my experience handling countless successful PR agency M&As over the years, I’ve observed that the benefits of selling a PR agency don’t only accrue to the owner but to their loyal staff as well. Sure, their lives change, which can be difficult for some people. But in the end, it’s usually for the better. Employees can find new routes to progress in their careers. The whole culture shift can itself be a positive one. Top 10 Employee Benefits Following an Agency Sale An agency sale should be viewed as fundamentally advantageous for employees. They often create more robust firms that remain operational and, in many cases, become even more competitive. Whether the goal of the M&A is to “save” a firm from failing or merely to scale it up and work toward molding it into a more competitive organization, they typically put companies in a stronger position. There are several positive impacts that an agency sale can have on employees, depending on the terms of the sale and the specific circumstances. Here are some potential benefits: 1. New career ladder to success . Opportunities will arise in larger organizations that simply don’t exist in smaller agencies. This can open new doors for your staff members, giving them the chance to move into a more senior role. And if the merger results in a more financially stable business, there’s also the possibility of eventual higher compensation. 2. Personal growth and development opportunities . When a M&A takes place, there are often training opportunities, which, in turn, gives enthusiastic team members access to new skills. Keep in mind: staff members want to feel like they’re learning, growing and improving. And with new people in the mix, there are also new experts and colleagues to learn from and evolve as a team. 3. Soft skills development . Believe it or not, new or unfamiliar situations can help your staff sharpen soft skills, such as time management, critical thinking, conflict management techniques and teamwork. Previously established teams may evolve due to the addition of staff from the acquiring agency, which can allow them to put their communication skills to good use. Collaborating with new team members can also expose your staff to diverse perspectives. 4. Different point of view . Staff members gain better perspectives just by being on the team of a more sizeable, growing company. Further, the brand recognition of a more prominent agency can open doors for employees in ways that don't necessarily materialize when they work at smaller firms. 5. More — and better — benefits . In some scenarios, the staff of the newly created agency receive new stock options or other benefits as a reward/incentive. Depending on the terms of the sale, these may include other financial incentives such as bonuses or profit-sharing arrangements. The new entity also may offer enhanced benefits packages, such as healthcare, retirement plans and other perks. 6. Better job security . An agency sale can positively impact staff members if the firm was in trouble or there was already a fear of possible job loss. Merging with another agency often creates a more stable business, giving employees more security and stability in their roles. 7. Sheer longevity . Typically, an M&A means strengthened job security for those staffers who remain with the agency post-merger. Employees will likely be relieved that their jobs may no longer be at risk. And a healthy future for the agency means that employees can grow their careers within the business, which is advantageous to those interested in more executive-type or management positions. 8. Morale booster . The newly formed PR agency might provide a different company culture that can deliver positive change for staff and the agency overall. 9. Better fit . In some cases, staff members may feel out of place within their department, and it can cause considerable frustration and stress. There are often opportunities for some team members following an agency sale to shift into a new area of the business, giving them a fresh start with a different team. Remember, companies thrive when staff members are satisfied and happy. 10. Client base growth : If the acquiring agency has a wider net or access to additional industries, it can open new opportunities for staff to work on a more diverse range of projects and gain experience in different avenues. Change Can Bring with It Opportunities PR agency sales are significant events that can help a firm grow. Yet, by their very nature, they impact the employees of everyone involved. For this reason, it’s essential to consider the consequences M&A will have on teams before it’s complete. At the end of the day, it takes a top-down approach to ensure that the newly formed workplace is a pleasant, cheerful, productive environment for all – before, during and after the entire process. Developing a careful, strategic game plan across both entities involved in an agency sale is vital to ensure a smooth transition and motivated team members . And whether your experience is seamless depends on many factors surrounding company culture, chemistry and collaboration, and the blending of best practices of each firm. Communication is key to ensuring both seller and buyer are content and that the agency teams and clients across both have a positive experience throughout the process – ideally, along with guidance from an experienced facilitator like The Stevens Group. ________________________ ART STEVENS Art Stevens is managing partner of The Stevens Group, a firm specializing in facilitating mergers and acquisitions in the PR and digital/interactive space. https://theartstevensgroup.com
By Art Stevens and Rich Jachetti 25 Oct, 2023
Here's a helpful piece of advice from Art Stevens and Rich Jachetti of The Stevens Group. Keeping the PR industry (and buyers & sellers alike) up-to-date and in the know.
By Art Stevens and Rich Jachetti 25 Oct, 2023
Take it from PR industry experts Art Stevens and Rich Jachetti of The Stevens Group as they explain how to best vet a PR agency if you're acquiring one.
By Art Stevens and Rich Jachetti 25 Oct, 2023
Here are the advantages of selling your PR agency that everyone in the PR industry needs to know.
By Art Stevens 29 Oct, 2019
Bringing two agencies together, whether large or small, is a significant undertaking. The art of acquisition takes not only a high degree of patience and focus but also a special set of skills and a great deal of strategic planning. In addition, whether or not your agency acquisition experience is… Continue reading The post Why PR Agency Acquisition Discussions Fall Apart first appeared on The Stevens Group | PR Agency Merger & Acquisition Consultants.
By Art Stevens 15 Oct, 2019
Let’s say you’re in the market for a new home. What do you do? You hire a broker to determine the current marketplace. You give the broker information such as where you’d like to live, what type of house you want, what amenities need to be within driving distance and… Continue reading The post Are PR Agency Valuations Worth the Time and Money? first appeared on The Stevens Group | PR Agency Merger & Acquisition Consultants.
By Art Stevens 09 Oct, 2019
RUDER FINNhas acquiredTHE SPI GROUP M&A FIRM THE STEVENS GROUP  BROKERED AND FACILITATED THE TRANSACTION   The Stevens Group is one of the leading acquisition facilitators in the public relations and digital marketing agency categories. Continue reading The post RUDER FINN ACQUIRES THE SPI GROUP first appeared on The Stevens Group | PR Agency Merger & Acquisition Consultants.
By Art Stevens 03 Jun, 2019
Want to know the quickest way to abruptly end a discussion about a PR agency sale just after the conversation starts? I’ve invested a lot of time and effort throughout my career in the public relations industry working with and mentoring both would-be buyers (and sellers) on how to approach an… Continue reading The post Seven Ways to Turn Off a Prospective Seller first appeared on The Stevens Group | PR Agency Merger & Acquisition Consultants.
By Art Stevens 07 Dec, 2018
French|West|Vaughan is acquiring a 50 percent stake in New York-based fashion, beauty and lifestyle shop AMP3. The two agencies will operate together as AMP3 PR in the New York market. AMP3 PR co-founders Dion and Alyson Roy will continue to direct the operation of the firm. FWV executive vice president and principal… Continue reading The post Press Release: F|W|V Acquires 50% Stake in AMP3 first appeared on The Stevens Group | PR Agency Merger & Acquisition Consultants.
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