Marketing Agencies Deals: Capital Markets Post-Close Done Right
Securities and M&A counsel for independent sponsors introducing marketing agencies transactions, from LOI to close to the capital markets that open up afterward.
An independent sponsor closing marketing agencies transactions in the $5M to $80M EV range has a defined set of moves at the Capital Markets Post-Close stage. Most of them are not in a generic M&A textbook.
The typical marketing agencies platform sits at $5M to $80M EV with EBITDA in the $1.5M to $14M range. The thesis runs on specialty agency or holdco platform with bolt-ons. If the founder leaves, half the agencies in the market lose 25% of revenue. Structure for that.
How Capital Markets Post-Close actually gets structured.
Refinance senior debt at the 12 to 18 month mark when EBITDA growth supports it.
Plan a dividend recap or partial liquidity event at the right margin and leverage profile.
Source growth equity from capital partners with deeper checks than the original LP base.
Build a relationship with strategic acquirers years before the exit window opens.
In marketing agencies, layer in client roster scrubbed for top-five concentration as part of the Capital Markets Post-Close workstream.
Waiting until the exit to think about capital markets. The relationships should be working months before you need them.
"The right introduction in month nine can be worth more than the original equity round. The call list is short and known."Jason Powell · Capital Markets Post-Close
The deal is one thing. The capital that opens up after close is another.
After close, the call list for refinancing, recapitalization, and growth equity gets short and known. Jason carries that list.
Related deal pages.
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Indemnification for Marketing Agencies
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An LOI on the desk, a marketing agencies target, and a Capital Markets Post-Close question worth a real conversation.
Twenty minutes of practitioner-grade input from a securities attorney whose first move is to read the deal, not the engagement letter.