August 2026: PR Pitches, Mergers and Acquisitions

The August edition of the PRmoment podcast’s UK pitches, mergers and acquisitions round‑up is steeped in cautious‑no‑more optimism. Host Ben Smith is joined, as ever, by AAR lead consultant and PCB Partners deal‑maker Andrew Bloch, who declares that the market mood has decisively shifted. 

Don't forget to get your tickets for the Creative Moment Awards, coming up in September.

Bloch reports that the usual summer slowdown never arrived. Instead, he describes “the busiest summer I’ve ever, ever seen, despite everyone being on holiday” [0:02:01], with frenetic activity on both the pitch and M&A fronts. September, he predicts, “is going to go nuts” as agencies head into a packed autumn new‑business season.

Here are some highlights from this week's show:

[0:01:27] Andrew Bloch: “I’m going to drop the cautious today. I think everyone is feeling pretty buoyant and optimistic… the last couple of months have been a much‑needed shot in the arm for a lot of firms heading into the second half of the year.” 

[0:02:01] Andrew Bloch: “There’s just a feeling of, we’ve just got to get on with stuff… the summer’s busy. It’s the busiest summer I’ve ever, ever seen, despite everyone being on holiday!”

[0:03:38] Andrew Bloch: “The smartest firms on the market are moving quick to buy in AI capabilities, rather than building it at a slower pace.”

[0:03:38] Andrew Bloch: “We’re seeing global network expansion firmly back on the agenda – a lot of American firms using bolt‑on acquisitions to stake out positions in markets they can’t afford to ignore.”

[0:05:38] Andrew Bloch: “Hugo Boss has appointed M&C Saatchi Sport & Entertainment on more or less a global brief… it really touches on their sweet spot of understanding culture, sport and entertainment.”

[0:09:10] Andrew Bloch: “Sky Sports have added Spike to their roster to create culturally driven activations designed to connect with sports fans beyond live broadcasts.”

[0:13:59] Andrew Bloch: “I’m of the firm belief that when done well, PR is the best discipline to run influencer campaigns because they understand storytelling.”

[0:19:02] Andrew Bloch: “The National Lottery Community Fund’s £3 million AI fund is designed to make sure marginalised groups aren’t left behind by rapid advances in technology.”

[0:20:14] Andrew Bloch: “The travel industry is grappling hard and fast to work out how to capitalise on changes in search and protect themselves from declines in traditional SEO.”

[0:30:41] Andrew Bloch: “AI is an integral part of how any modern comms firm has to create value for clients… it’s not a conversation that’s ever going to go away.”

On the deals side, three structural themes dominate. First, EOTs continue to entrench themselves as a mainstream exit route for founders. 

Eulogy and Field Consulting are the latest to go down the employee‑ownership path, joining a growing list that includes Citypress, Brands2Life and W. The tax regime has tightened but remains attractive. “The current capital gains tax on an EOT is 12%… they remain a very viable option, with lots of pros – not to say there aren’t cons as well”  [0:26:17].

Second, AI has moved firmly from buzzword to board‑level requirement. “The smartest firms on the market are moving quick to buy in AI capabilities, rather than building it at a slower pace” [0:03:38], says Bloch.

Parity’s acquisition of AI advisory firm Enigma is the standout example, aimed at helping clients become “AI‑native” and future‑proofing the group’s own proposition. 

More broadly, he argues, “AI is an integral part of how any modern comms firm has to create value for clients… it’s not a conversation that’s ever going to go away” [0:30:41].

Third, global network expansion is back in fashion, particularly for US‑headquartered groups. “We’re seeing global network expansion firmly back on the agenda – a lot of American firms using bolt‑on acquisitions to stake out positions in markets they can’t afford to ignore” [0:03:38]. 

Finn Partners’ buy of Australian corporate shop Honner and FGS’s Washington DC acquisition of Rich Foley & Anderson are cast as emblematic of this land‑grab in financial and public affairs work.

On the pitch front, the episode reads like a roll‑call of heavyweight consumer and corporate briefs. Hugo Boss hands a multi‑market mandate to M&C Saatchi Sport & Entertainment, a win Bloch says “really touches on their sweet spot of understanding culture, sport and entertainment” [0:05:38]. 

Adobe’s UK and EMEA comms move to Burson in what Bloch calls “a whopper of a win” [0:07:47], stretching across corporate reputation, AI storytelling, creator comms and hub‑agency coordination.

Influencer and social briefs are another clear through‑line. Mischief’s Matalan win underlines Bloch’s conviction that, “when done well, PR is the best discipline to run influencer campaigns because they understand storytelling” [0:13:59].

Uncovered’s social mandate for Weetabix and Alpen, and Milk & Honey’s work on the National Lottery Community Fund’s £3m AI fund – “designed to make sure marginalised groups aren’t left behind by rapid advances in technology” [0:19:02] – round out a month that suggests UK PR is not just busy, but structurally evolving around AI, ownership models and genuinely integrated campaigning.

Transcript

[0:00:03] Ben Smith: Welcome to the PRmoment podcast, produced in association with the Markettiers Network. Welcome to our August review of pitches, mergers, and acquisitions in the UK PR scene with the good fellow that is Andrew Bloch, and today we're going to be discussing the biggest pitch wins, mergers, and acquisitions that the UK PR sector has seen in the last month or so. Andrew, if you didn't know, is lead consultant, PR, social, content, and influencer at the new business consultancy firm AAR, and a partner at PCB Partners, where he advises on the buying and selling of marketing services agencies. He also runs the advisory firm Andrew Bloch and Associates. Before we start, don't miss the Creative Moment Awards. Congratulations to all of you who were shortlisted. It really is a shootout of the best creative PR firms in the UK. The Creative Moment Awards – the awards show is one of the most favourite nights of the year for myself. It's coming up actually on the 17th of September, quite early this year. So we come from our summer break straight into the Creative Moment Awards. So, looking forward to that. If you do want to come along, it's quite an intimate venue, that one actually. So I do suggest booking early because tickets are going pretty quickly this year, which I guess, Andrew, resonates with the positive mood in the market. Welcome to the show.

[0:01:27] Andrew Bloch: Thank you, Ben. Yeah, the mood is really positive. I'm actually, I normally say that the market is cautiously optimistic, is what I've been saying, I think, for the last few months. I'm going to drop the cautious today. I think everyone is feeling pretty buoyant and optimistic. Don’t know whether it’s a summer bounce or what, but really, you know, the last couple of months have been a really, I would say, much‑needed shot in the arm for a lot of firms heading into the second half of the year.

[0:01:58] Ben Smith: Is that, is that the boom and bounce, do you think?

[0:02:01] Andrew Bloch: I mean, it might be. I think, I don’t know, most agencies are seeing trading hold up better than they expected. I think that, you know, there’s a confidence for the year ahead. The usual stuff is still sort of lurking in the background. Is it a boom and bounce? I don’t know. I think there’s just a feeling of, we’ve just got to get on with stuff, you know. There was a lot of activity over the summer. Lots, you know, the World Cup, Wimbledon, stuff like that helps. Hopefully, clients won’t sit on budgets and briefs for too long, sort of going into next year. But I think September is going to go nuts. You know, the summer’s busy. It’s the busiest summer I’ve ever, ever seen, despite everyone being on holiday in a way.

[0:02:45] Ben Smith: When you say busy, you mean busy from a pitch perspective and an M&A perspective?

[0:02:50] Andrew Bloch: Both. I mean, nothing is stopping. I mean, it’s actually really hard work because people are on holiday, so you’re having to sort of navigate doing other people’s work and all of that kind of stuff. But, you know, sometimes over the summer you see a bit of a slowdown, and we pick it up in September. Everything has kept going, and I think come September, you know, back to school and all of that, it’s going to go to another level. I hope it does. I mean, it feels – I said to you just before we started recording – it is the busiest I’ve ever been across all the areas I’m working on in a really positive way, so…

[0:03:21] Ben Smith: Right. Well, let’s hope so because, and that is reflected – we’ll talk about it in a moment – but it is reflected in the pitch wins we go through. There is a lot of agencies that have had some wins this…

[0:03:32] Andrew Bloch: Some big ones. Yes, big ones.

[0:03:35] Ben Smith: And the M&A stuff, you hinted at it there, but that’s also busy, is it?

[0:03:38] Andrew Bloch: Yeah, it’s been very, very active, and interestingly, a bit more varied than perhaps it’s been over the last few months. So look, there’s been the normal sort of what I would call straight acquisitions, but we see – I know we’ll come on to talk about this in a bit more detail – but EOTs, employee ownership trusts, are having a bit, well, a continued moment. It’s probably not right to say they’re having a moment. They’ve been popular for a while, but there’ve been a couple of well‑established agencies that have chosen to go down that route this month, and it is becoming a genuine option for a lot of founders who are thinking about an exit. And then, you know, on the acquisition side, familiar themes, I guess. You know, the sharpening of the importance of AI capabilities, which really is now a must‑have, not just a nice‑to‑have. And the smartest firms on the market are moving quick to buy in, rather than building it at a slower pace. And I think we’re also seeing global network expansion firmly back on the agenda. A lot of American firms using bolt‑on acquisitions to sort of stake out positions in markets that they can’t afford to ignore. And also, we’re seeing the independent creative sector, you know, not only, well, I guess, continuing to consolidate, but both the scale and the sustainability is driving deals as much as opportunism and deliberate structural decisions that the market is giving them the options to do. So it’s fun, it’s exciting at the moment. As I said, I’ve got more deals on than I’ve ever had at one moment in time before, which is hard work, but I’m not complaining. I would never do that.

[0:05:25] Ben Smith: We all feel so sorry for you, Andrew. Right, let’s crack on with it because, as you’ve hinted towards there, there’s plenty to go through. Pitch‑wise, first of all, Hugo Boss has a new PR firm.

[0:05:38] Andrew Bloch: Yes, your suit‑wear of choice. Hugo Boss has appointed M&C Saatchi Sport and Entertainment. This is a really nice win for them. They’re a great agency, and this is more or less a global brief: UK, US, the DACH regions, raising brand awareness, cultural relevance, and, you know, if you follow Hugo Boss, you can see now they sort of spread across fashion, sport, art, culture. For M&C, they’re going to look after product and campaign launches, partnerships, fashion shows, big events, store openings, retail activation. So it’s a lot of work there, and it does sort of touch on their sweet spots of really understanding culture and sport and entertainment and all of the areas that they’re really strong in. So yeah, nice win for them, sits across…

[0:06:29] Ben Smith: An agency that consistently does good work, and Manifest and Grayling are sharing a roster – a little roster, I should say.

[0:06:40] Andrew Bloch: Yeah, I thought this was an interesting appointment. Two quite different agencies, both excellent. London St Pancras High Speed have appointed them, so they’re the owners and the operators of the St Pancras International railway station. And between the two of them, they’re going to handle consumer and event management, some national campaigns, content, talent partnerships, creative comms, and essentially position St Pancras as one of London’s leading cultural and retail destinations. So Manifest worked with them over the summer. Grayling are about to launch an autumn campaign. This is good, you know. Both these agencies, as I said, excellent. Slightly different. Grayling have got a real strength in travel and transport brands like National Rail, easyJet holidays, On the Beach, and then Manifest also, you know, experience in transport with people like Volvo, Polestar, but also broader work across the sort of lifestyle side of things. So yeah, good win for both.

[0:07:42] Ben Smith: And news from Adobe, who have a new PR firm, Andrew, and this feels like a big one.

[0:07:47] Andrew Bloch: Yeah, this is a whopper of a win for Burson. So they have won UK and EMEA comms. So this spans everything: corporate reputation, AI, innovation, storytelling, the enterprise side of things, the exec communications, creator comms, thought leadership – I mean, everything, including the EMEA coordination side of things. So acting as that hub agency for Europe. So, I mean, this is, look, it’s a big, big brand. Burson are going to help them streamline their storytelling for the various different audiences that use their products. It’s a great win for them. I think it’s a significant one, and Axicom are involved in this as well as the sort of tech agency as part of the Burson family. And Isabel Cooney sort of recently got named, if you remember, as the tech practice lead for Burson and president of Axicom across Europe. I mean, she is going to be delighted with this. Graham Anthony, who I used to work with for many years as the creative brains behind this win, is as well. You only have to look at his LinkedIn to see how happy he is about it, and rightly so. I mean, I think it’s a brilliant, brilliant win and a great chance for Burson and Axicom to work together as an integrated team.

[0:09:07] Ben Smith: Right, and news from Sky Sports.

[0:09:10] Andrew Bloch: Yes, Sky Sports have added to their roster. They’ve added Spike, which is the sports marketing agency, which is part of W Group, and they’ve been hired to create culturally driven activations, which are, as they’ve put it, designed to connect with sports fans beyond live broadcasts. So, not entirely sure what that means, but it sounds quite interesting. It’s a brief that covers both the proactive side of media relations, but also press office support and multi‑channel campaigns. So Sky have a couple of agencies already on their roster: Ready10, Homeground, and it’s nice for Spike. They’re a new agency. They’ve only been around – I lose track of time – but I would say about a year or so.

[0:09:57] Ben Smith: It’s impressive, impressive to get on that roster so early in their journey, isn’t it?

[0:10:02] Andrew Bloch: Yeah, it’s brilliant. I mean, you know what, I think, I always get very excited when new agencies win massive brands. It’s, I think, it’s one of the best things about our industry. So great to see them added to the roster alongside some more established agencies.

[0:10:16] Ben Smith: And the latest in what feels like a bit of a theme, another win for John Doe.

[0:10:21] Andrew Bloch: Yeah, John Doe are in a good place at the moment. They’re having a bit of a moment, and their latest win is Viniky – if that’s how you pronounce it – which you probably won’t have heard of, but you will have heard of the brands within their portfolio. Some of your favourite beverages: Echo Falls, Hardys, Campo Viejo, and they have won the consumer and social. There’s actually six brands in total. They started out running a project which they did earlier in the year for Echo Falls and their new raspberry Fruit Fusion flavour, and then they’ve obviously got the expanded brief now after proving themselves. So Viniky was only formed last year. It was the merger of Accolade Wines and Pernod Ricard – the winemaker side of that business. But it’s a pretty big business. They produce over 30 million cases a year, and probably the world’s biggest, if not, or certainly one of the world’s biggest dedicated wine businesses, so really nice for them. They work still with Mercie on the B2B side of things – doesn’t impact their brief. So yeah, as you said, you know, John Doe having a bit of a moment. So this sits across some really nice clients in their portfolio: Guinness, Vinted, Lovehoney, Glenmorangie, Meta wearables, so yeah, good for them.

[0:11:43] Ben Smith: And news from Weetabix. Weetabix seems to have had a few PR firms over the last few years, but they’ve got a new one now.

[0:11:50] Andrew Bloch: This is a social media brief. It was a pitch that I actually ran as part of my work with AAR. They’ve appointed Uncovered, who are a fantastic social agency. It was a very, very toughly fought pitch and a deserved win for Uncovered, who are a great agency doing a lot of brilliant work at the moment. Actually recently got acquired, I think we talked about it last month, by LADbible Group. So they’ve won the social media remit for both Weetabix and also Alpen, which is part of the family. So it’ll be interesting to see what they do. They’ve got a high bar. I think there’s been some great work for Weetabix previously. So see where it takes them.

[0:12:33] Ben Smith: And news from your old firm, Frank. Frank Social has had a nice win.

[0:12:37] Andrew Bloch: Yeah, actually a couple of good wins for Frank this month. The first was for the social part of Frank – Frank Social. They won Booker Group, which is the food and drink wholesaler that’s owned by Tesco. So this is a social and influencer campaign. So big business, 200 cash and carries across the UK. The usual sort of stuff: organic, paid, influencer engagement, community management. Doesn’t impact Press Box, who still work on the B2B side of the business. And then the other win for them has been Lavazza, lovely brand, which I know will mean a lot to Alex Grier as probably the man who drinks more coffee than anyone else I’ve ever met.

[0:13:20] Ben Smith: I reckon I push him for that, but is that his…

[0:13:23] Andrew Bloch: Well, he says six cups a day, I think. But I would probably say more. I mean, it’s…

[0:13:29] Ben Smith: Yeah, I can’t compete with that. That’s good going.

[0:13:32] Andrew Bloch: Good going. So if anything, it’s going to save him a few quid in coffee, and he’s a real coffee snob as well. Quite annoying. But anyway, enough of that. They’ve won the consumer, trade, corporate side for the brand, supporting their flagship store, doing the press office, and they’ve got a whole load of whole bean products, ground, capsule – the whole range. So nice win for Frank.

[0:13:55] Ben Smith: And another agency that seems to be on a bit of a roll the last few months, Mischief. Nice win for them.

[0:13:59] Andrew Bloch: Yeah, I think Mischief are a consistently strong agency. They really are. Sometimes they seem to go a bit quiet, but when you look at the brands they’re working with and the work they’re doing, they are consistently strong. And they’ve just won Matalan, which I think is a fantastic brand to work on. Influencer brief, actually, to help raise awareness of their fashion and homeware products. So yeah, I think they’ll be delighted by this. Lots of opportunity. I think it’s great when a PR agency, a consumer PR agency, can win a dedicated influencer brief. There’s obviously, you know, everyone says they can do influencer – the social agencies, there’s dedicated influencer agencies, the media agencies say they can do it. I’m of the firm belief that when done well, PR is the best discipline to run influencer campaigns because they understand storytelling. So they’ve won that. Headland still handle the corporate and financial side of things, but yeah, big brand, 270 stores across the UK, plus online. And as you said, good run for Mischief. They also work with Diageo, Schweppes, Ocado, E.ON, a whole load. And last year they opened this youth division to help them respond to briefs that sort of focus on Gen Z and Gen Alpha. So whether that had any impact in terms of them winning this brief, I don’t know, but it certainly wouldn’t have done any harm. They just released a really interesting report last week, which I’m halfway through, but some very interesting findings on this audience.

[0:15:33] Ben Smith: Right, and news from Brazen.

[0:15:35] Andrew Bloch: Yeah, another retail win. Lakeland – brilliant brand, brilliant win for Brazen. They’re the homeware retailer. It’s actually their first new agency for 20 years, which, you know, it’s been a bit of a theme this year, is brands making that move after long periods of time with agencies. So this is all about helping them reach a younger generation of shoppers and raising awareness of its products. So again, touches on a number of areas: consumer, corporate, influencer, press office management. So a nice win for them. I mean, it’s an interesting brand, Lakeland. They’ve got a whole load of – interesting retailer – whole load of kitchen appliances, baking supplies, cleaning. When you look at it, it’s vast. So there’s a job to be done in raising awareness of all of that. And yeah, nice win for Brazen. Really, they’re also having a good run at the moment.

[0:16:29] Ben Smith: Yeah, it’s nice, isn’t it? We are talking about definitely a broader range of agencies that are consistent winners, which is great to see. And Ready10, which I guess another one of those, on that theme.

[0:16:43] Andrew Bloch: Yes. Yeah, I mean, Ready10, never one to be far away from the headlines, celebrating their 10th year at the moment, which I find unbelievable. It feels like just yesterday, but that just shows how old I am. They’ve won yfood, which is a brilliant product actually that I’ve used for several years. It’s a meal replacement brand. They call it a smart food brand that competes against people like Huel, who is, I think, the market leader in that sector. But they recently got acquired by Nestlé in the summer, and it’s a consumer brand awareness campaign as well as some trade work, influencer work. So I think it’s a, I’m really looking forward actually to seeing what they do because I’ve been a bit of a fan of this brand for quite a while. But yeah, sits alongside some great clients that are in a similar space: McDonald’s, HelloFresh, as well as things like TikTok, Sky, Paddy Power. So yeah, Ready10, nice win for them. Congrats to Fraser and the crew.

[0:17:41] Ben Smith: Absolutely. And Hatch have had another nice win.

[0:17:45] Andrew Bloch: Yeah, this is a bit of a theme we’ve seen recently, whereby restaurant brands are appointing agencies to really focus on specific locations, and Dishoom have appointed Hatch to launch their new Leeds location.

[0:18:02] Ben Smith: And this just makes sense, doesn’t it, really?

[0:18:03] Andrew Bloch: Yeah, it does. It’s just something that I don’t know – I haven’t really – I think everything’s got wrapped into one agency in a simplification sort of theme, and then maybe brands are realising that you do need nuanced comms, and you have to understand the local area if your communication is going to be authentic and resonate and work. So yeah. So this is a new site on Vicar Lane, and, yeah, their job is to really establish it within the Leeds hospitality scene. There is a national remit for Dishoom, which is handled by Gemma Bell and Company. But yeah, Hatch won The Ivy Collection last – I can’t remember – last year, I think, or earlier this year, to look after their north of England locations. So clearly, Dishoom have taken a look at that, seen it’s working, found out who’s behind it, and got Hatch on board.

[0:18:57] Ben Smith: Brilliant. It feels like a significant win for Milk & Honey.

[0:19:02] Andrew Bloch: It is significant. I think significant in terms of the client, significant in terms of the work that they’re going to be doing. They’ve won some work from the National Lottery Community Fund, which is to promote its AI fund, which is a £3 million fund essentially designed to make sure that marginalised groups aren’t left behind by rapid advances in technology. So it works in partnership with UK Community Foundations, the Centre for Acceleration of Social Technology. It’s a short‑term contract to begin with, a few months long, and it’s going to focus on media engagement around national tech and AI titles, but it also includes things like thought leadership and supporting CEO op‑eds and all of that kind of stuff, strategic roundtables. So it’ll be very interesting to see the work that comes out of this. I think it’s really a very important fund, and I think Milk & Honey are very, very well placed to do this. They’ll smash it.

[0:20:08] Ben Smith: Right. And a double win for The Remarkables, a bit of a geo race.

[0:20:14] Andrew Bloch: Yeah, The Remarkables, like lots of agencies, have been really focusing on pushing their GEO capabilities and what they can do with AI visibility, and they’ve won two briefs, TUI and ODEON. So, let’s start with TUI. It’s really about advising them – I mean, geo is so important for a travel brand. You know, how do customers go on this journey of booking a holiday? So everything from that sort of initial holiday inspiration through to discovering a destination, through to actually booking consideration, and, I mean, it’s fascinating work, and I think the travel industry is grappling hard and fast to work out how to capitalise on changes in search and protect themselves from declines in the traditional SEO methodology that they’d have been undertaking. So that’s really interesting. And then for ODEON, again, it’s a bit of a discovery project. They’ve talked about how they’re going to devise a multi‑market programme to focus on how ODEON and the local market brands can be visible across entertainment and cinema and leisure and appear in AI search. So it’s also about enhancing reputation, increasing brand loyalty, you know, over and above just driving sales. So this is good work. Really, really good work. And Remarkable are having a good run. They’re working with people like Amazon, Spar, Stock Spirits Group. So clearly, their geo offering is good for new business, as it has been for many firms in the last year or so.

[0:21:53] Ben Smith: Yeah, it’s an interesting spot, that one. And a nice win for Citypress.

[0:21:59] Andrew Bloch: Yes, I know you are partial to a McVitie’s digestive with your tea, and they have won Pladis, who are the owners of McVitie’s, but not just McVitie’s – Godiva, Jacobs, a number of brands. This is a big, big brief. It’s global. It’s a global corporate brief. So obviously global media relations, corporate reputation, as well as things like internal comms and creative support. So this is a big one. I mean, Citypress look after some big, big brands, everyone from Coca‑Cola and their Europacific partners through to Aldi, Molson Coors. Pladis already work with The Romans, Taylor Herring on the consumer side of things, as well as That Lot and Uncovered, who we mentioned previously with the Weetabix win, on the social side of things. So a big, big brief and lots of work to be done in this space. Their products are sold in over 110 markets worldwide, which is pretty much the whole world. So, I’m more of a McVitie’s Jaffa Cake kind of guy, but, yeah, you try not to have too many, don’t you? But…

[0:23:22] Ben Smith: But news from Headland, a slightly different client.

[0:23:24] Andrew Bloch: Yes, this is the last win of the month that we’re going to talk about, and it’s a nice one for Headland. It’s the Pension Protection Fund. Again, important work. So the Pension Protection Fund, they’re the people who pay compensation when employers go out of business and they don’t have the sufficient assets within the business to compensate for the pension scheme. So it’s important work. It spans media relations as well as spokesperson training, crisis preparation support, thought leadership, stakeholder engagement, measurement to figure out if it’s working or not. This is a two‑year contract. It was actually listed on the government Find a Tender site, which is always good because I can dig a little bit deeper. It’s a brief that’s worth £1.86 million, I assume across the two years. So not to be sniffed at. They’re a public corporation. They’re part of the Department for Work and Pensions. They’ve got £31 billion of assets. They’ve got nearly 300,000 members. So significant job to be done. And Headland are, you know, first‑class corporate agency. Good choice, I would say. So let’s see what happens. Hopefully, there won’t be too many employers going out of business and leaving their employees at risk of not getting their pensions, but…

[0:24:38] Ben Smith: Let’s hope not, let’s hope not. And moving on to a busy M&A scene as well, a couple of EOTs to kick us off. You spotted one with Eulogy?

[0:24:48] Andrew Bloch: So yeah, there’s been a couple of firms this month that have undertaken employee ownership trusts. So Eulogy is the first decent sized agency, very, very strong agency, 40 or so employees. So Adrian Brady, who is the founder, has transitioned ownership to the employees. So they’ve been going since about 1997. I’m going to say £5 million‑ish in revenue. Some really nice clients: Liquid Death, Aura, Amazon, NatWest, Virgin Media O2. So yeah. I mean, as we can come on to talk about, that’s become a very viable route for very strong agencies as an option. The second one is Field Consulting. Again, slightly smaller firm, but great business – public affairs and corporate comms. So they’re about 20‑ish full‑time employees. So they’ve again sold to staff, who will indirectly own the entire business after Chris Rumfitt, the CEO, has transitioned ownership. They’ve been going for about 12 years, £3.5 million revenue. Really good. So, you know, look, there’s been loads of these that have happened: Citypress, Brands2Life, W…

[0:26:08] Ben Smith: And the deal’s changed a bit, hasn’t it, tax‑wise? It sort of – it was really good, and now it’s still quite good. But just talk us through, I guess, the pros and cons of it.

[0:26:17] Andrew Bloch: My favourite subject, tax. Yeah, I mean, it used to be unbelievable because there was no tax, and that was really a major benefit of doing it. Now, effectively, the current capital gains tax on an EOT is 12%. So it’s a 50% relief cut. So you’re only getting 50% of the – I mean, I say only, it’s a significant amount – 50% of the gain is exempt from CGT, which means that the rest is treated as a standard chargeable gain. So effectively, the rate is 12% because the standard upper capital gains tax rate for a business asset is 24%. So you’re taxing half of the gain at a rate of 24%, which yields an effective rate of 12% across the total proceeds. So the benefits are still there in terms of employee benefits. So you can still, as an employee of an EOT, receive up to £3,600 a year in income‑tax‑free bonuses, which is nice. National Insurance contributions still apply. There’s a couple of boring things which I won’t go into, in terms of clawback windows and stuff if you get it wrong, but they are becoming a very viable option, with lots of pros – not to say there aren’t cons as well, because there are – but it’s, you know, if you’re looking for a route out, this is a route to cash in.

[0:27:48] Ben Smith: Yeah, absolutely. And moving on to another one you’ve spotted, Parity have made an acquisition.

[0:27:57] Andrew Bloch: They have, and I thought this was interesting. So Parity are the guys most famously behind Brands2Life. They acquired Brands2Life, who did go through an EOT, and without, again, going into too much detail, once you’ve been an EOT for two years, you are able to sell again without having the adverse tax implications if you structure it properly, and that’s what Brands2Life did. Anyway, we’re not talking about them; we’re talking about their latest acquisition, which is Enigma. Now, this is interesting because they’re a really new firm in the AI space, and actually a firm that I’ve been working with for a couple of years, and were brilliant, brilliant at what they do. They’ve taken a majority stake. I don’t exactly know how much they’ve taken. And what Enigma – they’re an AI advisory firm, and what they do is help organisations move from AI experimentation and dabbling around to basically becoming AI‑native through thought leadership and capability. So yeah, I’d been working with them for the last couple of years with agencies that were looking to do this exact job, and I think it’s interesting that Parity have snapped them up. Obviously, Enigma were working not just with agencies; they were working with brands as well, actually doing quite a lot in the corporate space with a lot of financial services companies. But they were fast‑growing. Although they were only a couple of years old, they had 18 full‑time employees. They had three offices: Amsterdam, London, Dubai. The founder, actually, Arnold Mossman, was based in Amsterdam. So he’s going to take this role of head of AI solutions at Parity, and obviously advise across the group. So I think it’s interesting. I mean, you know, Parity have been investing in AI, data, analytics. They brought on board Elizabeth Gladwin as their chief data and innovation officer last year – or maybe longer than last year. They launched the Parity AI Hub. They appointed Henrik Ebsen as head of AI integration. So this is their focus. As a group, they can see the way the world is going, and I would say, you know, their insight and intelligence capabilities throughout the group are right at the forefront of what’s going on.

[0:30:11] Ben Smith: It’s interesting, isn’t it? You’ve got these big global PR firms who are part of the holding groups who are investing a huge amount in it, and then you’ve got – it’s interesting that that AI integration strategy is also there from, I guess, the slightly smaller but still very large groups like Parity, who are also investing in it. The independents as well, they’re all doing it in a slightly different way, but they’re embracing that.

[0:30:41] Andrew Bloch: Yeah, I mean, this is – it’s an integral part of how any modern comms firm has to create value for clients. So it’s slightly easier to do it when you’re a smaller group than it is when you’re a behemoth like a WPP. But I mean, look, not to say they’re not – they’re investing billions in this. But I think what it says to me, like, if you look, this is going to more than likely cut off a big income stream. You know that it’s going to be hard for them to sell into other consultancies and agencies. So they clearly see, from a client perspective, it’s worth taking that risk to grow that other side of the business. So exciting, and we’re going to see so much more of this. You know, I see it even when clients are briefing out agencies and pitching agencies. They care – obviously, the work that an agency has done is important, and their heritage and what they’re doing at the moment – but what becomes more and more and more important is their capabilities for the future, and are they fit for purpose in a year’s time, in two years’ time? So AI is right at the centre of that. It’s not a conversation that’s ever going to go away.

[0:31:52] Ben Smith: Yeah. And Wonderhood Studios have made an acquisition.

[0:31:56] Andrew Bloch: They have. A lovely acquisition, actually. They’ve acquired Elvis from Next 15, who are a PLC. And Elvis have been around for a while, a long time. They started out as WCRS, then they became Engine, subsequently they became Elvis Communications, and, you know, they’ve operated as a creative and growth agency, I’m going to say, for four decades. I might be slightly off on that, but a long time – longer than you’ve been alive, Ben. So this is a big acquisition. It creates a combined business of over 130 people. It strengthens Wonderhood’s position. They’ve got this kind of, this really interesting USP where they’re the only independent creative company that operates as both an ad agency – and a very good ad agency – and a premium TV production company. So I think what this does is it gives them scale, it gives them creative capabilities – additional creative capabilities, I should say – and access to a client portfolio, which, you know, hopefully will help support this next phase of Wonderhood’s growth ambitions. They’re a very impressive company, Wonderhood, and it’s hard to have a USP in this market, and they do.

[0:33:11] Ben Smith: Right. And Finn Partners continue their global acquisition strategy, and they bought a firm in Australia.

[0:33:18] Andrew Bloch: Yes, they have. They’ve acquired Honner, who are an Australian‑based financial and corporate comms firm. It gives them a presence in Australia – well, actually, they’ve already got a presence in Australia – but it adds offices for them in Sydney and Melbourne. It expands their global footprint. They’re now, I think, up to 37 offices across the world. It’s got an Asia‑Pacific team of approximately 250 people. So this was, you know, a decent‑size acquisition – well, I say decent, small acquisition, but decent size in terms of the Australian market – 25 full‑time employees. So again, you know, I mentioned this at the top of the show. It’s giving them a larger platform for growth and development. It’s giving them opportunities for international collaboration, cross‑border client work, access – you know, the usual stuff: access to global expertise, broader career pathways, all of that stuff. So Finn has been really focusing on expanding in this region for the last few years. They bought, last year, Rice, which was a Singapore‑based comms agency, which gave them 50% growth in that region, and then with this, you know, they’re getting up to the $20 million mark in the region for this year, which is significant. You know, Finn are now pushing the $200 million mark globally, so there’s no stopping Finn. They’re just building and building.

[0:34:42] Ben Smith: Can’t be many firms, PR firms, who’ve done more acquisitions in the last 10 years than Finn. I can’t – I mean, they have done a lot, haven’t they? Is there…

[0:34:52] Andrew Bloch: I mean, we’re coming on to talk about FGS, which I think gives them a run for their money, but there aren’t. And it’s not easy. I think one of the biggest challenges I find in M&A is these companies that are acquiring rapidly. You find them an asset which is perfect for them, but they’re still chasing their tail on the integration of the last asset. And actually, with another business I’m involved in, Exited Founders, which is more of a management consultancy in this space, a lot of the work that we’re seeing is helping integrate these firms into the bigger businesses, because it’s one thing buying them; it’s another thing making them work within your organisation. The bigger you get, the harder it is to do. But they’re doing a great job, Finn. I mean, as I said, I don’t see any signs of them slowing down. They’ve got a good model. They know how to integrate stuff well, and they know how to make it work across the group, so that one plus one equals more than two, which is the whole aim.

[0:35:51] Ben Smith: I spoke to somebody on the buy side, if you like, from an agency who does quite a bit of these acquisitions, and you never quite know the full reason for the acquisition, can you? It might be client‑related. It might well be talent‑related. So just because, from the outside, sometimes these things don’t necessarily look like they’ve gone brilliantly, internally they kind of tick the box and have been effective for what they were trying to get out of it.

[0:36:19] Andrew Bloch: No, it’s very true. When you work on the buy side, there’s always a strategic requirement, whatever that may be, because if you are running a Finn, they’re seeing leads coming in – when I say leads, opportunities to acquire – probably on a daily basis. So yes, they’ve got to filter stuff, but buy side is a bit more like working as a headhunter. You’re out there and you’re looking for those assets which don’t have the “for sale” sign outside the door that meet a very specific brief. And the work that I do in this space, sometimes it’s geographic, as you said. Sometimes it’s client requirements. Sometimes it’s skill‑based. But it’s always – there’s a strategic requirement. It’s not just, “Go out and see what you can get us,” or, “See what’s cheap and good value.” It’s, “We want the best, and this is what we want, and we can’t find it from the stuff that’s incoming, and we find it hard to do it just going out direct.” That’s where buy‑side firms come into their own.

[0:37:16] Ben Smith: Right. And FGS, as you hinted at, they have also made an acquisition in Washington.

[0:37:22] Andrew Bloch: Yes, they’ve acquired Rich Foley & Anderson, who are a government affairs agency based out of the heartland of government affairs in the US, Washington. So this is a straightforward deal that adds their expertise in advocacy and regulatory access to FGS’s focus on strategic comms and transaction advisory and all of that side of things. So they’re an impressive firm. They advise a whole host of Fortune 500 companies and fintech startups and banks, asset managers, insurance companies – the whole remit. Great deal for them, because it’s going to give them access to FGS’s network of global advocacy and offices in Brussels and London and across APAC. So really good. And in turn, for FGS, they’re going to get access to this relationship that Rich Foley & Anderson has with the US regulators and Congress, so it’s big. It’s important for them. It’s the second acquisition of a government affairs firm that they’ve made. They bought, if you remember, back end of last year, Tarpine, Downs & Young. They also acquired Memetica, which is a threat‑intelligence consultancy. And they – I mean, look, they’re on a run. In London, they bought Edmonds Elder last summer, which is a digital‑first agency. So they’re just growing and growing, and this is all off the back of the fact that KKR took a majority stake in FGS since the end of last year, and they exited WPP as part of that process. And ever since then, they’ve just got this new momentum. They’re now, I think, valued – well, they were valued at the time – at around £1.7 billion. I mean, it’s…

[0:39:22] Ben Smith: It’s going up.

[0:39:23] Andrew Bloch: Yeah.

[0:39:23] Ben Smith: You’d say that.

[0:39:24] Andrew Bloch: Good work, everybody involved.

[0:39:24] Ben Smith: Andrew, thank you so much for that. Much appreciated. If you’re interested in PR news, do keep a lookout for the PRmoment news section. I think it’s – we’ve had about 12 news stories since I came back from holiday just a couple of days ago, so it’s absolutely flying, that. So do keep a lookout for that. But Andrew, thanks so much for coming on the show, and see you next month.

[0:39:47] Andrew Bloch: See you next month, Ben.

[0:39:50] Ben Smith: Thanks for listening to the PRmoment podcast, produced in association with the Markettiers Network. If you’ve enjoyed the show, please do review us on iTunes and give us a decent rating.