Digital Agency

April 2018

Sectorwatch

The digital agency sector remains highly sought after asset in the M&A market driven by brand's desires to maintain customer loyalty and engagement. Firms specifically providing analytics capabilities are targeted by a diverse group of buyers.

 

Industry Trends:

  • Current revenue growth rate is less than the average of the last 3 years, indicating that the market may be flattening or declining
  • Current gross profit margin is less than the average of the last 3 years gross profit margins, indicating customer pricing power
  • Current EBITDA margin is less than the average of the last 3 years EBITDA margins, which may signal further consolidation