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April 2018
Digital Agency
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