Here’s a snapshot of key market movements and notable industry developments:

Market Performance
U.S. and European Indices
The Nasdaq reached an all-time high, reflecting the continued strength of the U.S. tech sector.
In Europe, the MSCI Europe IT Index is trading near record levels, underlining sustained confidence in European technology and innovation.
Valuation Trends
Advertising Agencies: Valuations remained steady in November, with average EV / LTM EBITDA multiples holding at:Public market comps: 9.1x
M&A comps: 7.5x
AdTech: This sector saw growth in valuations, with public market multiples rising month-over-month from 19.6x to 20.6x, indicating robust investor interest.

M&A Activity in Digital Marketing
The digital marketing M&A market remains vibrant, with 19 disclosed transactions in November alone. Below are some notable deals:

1. Denvir Marketing (UK)
Focus: An integrated brand and digital marketing agency serving sectors such as energy, food & drink, tourism, retail & e-commerce, construction, and industrial markets.
Acquirer: Altar expanded its portfolio with this acquisition on November 18, 2024.
Transaction Details: Terms of the deal were undisclosed.
Read more about the acquisition here.

2. Croud (UK)
Focus: A digital marketing agency offering a suite of services, including paid search, SEO, paid social, programmatic display, video, content and creative, GMP, data solutions, and in-housing.
Acquirer: ECI Partners acquired Croud on October 31, 2024.
Transaction Insights: While reported valuations suggested a figure of £180 million, this estimate likely overstated the company’s size, implying an unrealistic 30x+ EV / LTM EBITDA multiple.
Learn more about the acquisition here.

3. OMNE Agency (UK)
Focus: Specializing in food service marketing, catering to the food, beverage, and hospitality industries.
Acquirer: YFM Equity Partners completed an $11 million leveraged buyout (LBO) on October 30, 2024.
Further details on the acquisition are available here.

Industry Takeaways
The steady performance in advertising agency valuations, coupled with growth in AdTech multiples, indicates strong investor confidence in the sector’s long-term potential. The active M&A environment, highlighted by diverse acquisitions across markets, underscores the continued demand for innovative and niche marketing agencies.

For agencies in the leisure marketing space, these trends signal a ripe environment for growth, investment, and potential acquisition opportunities.

Market Update, December 2024, Fortitude Advisors