Diligence · Marketing Agencies

Marketing Agencies Deals: ERISA & Benefits Diligence Done Right

Securities and M&A counsel for independent sponsors diligencing marketing agencies transactions, from LOI to close to the capital markets that open up afterward.

EV range $5M to $80M EV EBITDA $1.5M to $14M Audience Buy-side / Sponsor
The deal context

An independent sponsor closing marketing agencies transactions in the $5M to $80M EV range has a defined set of moves at the ERISA & Benefits Diligence 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.

The moves

How ERISA & Benefits Diligence actually gets structured.

  1. Pull the 5500s and audit reports for the last three years.

  2. Identify any controlled-group exposure that follows the seller post-close.

  3. Address multi-employer pension withdrawal liability where applicable.

  4. Plan the benefits transition to the buyer's plans, with a TSA period if needed.

  5. In marketing agencies, layer in client roster scrubbed for top-five concentration as part of the ERISA & Benefits Diligence workstream.

The common mistake

Skipping the multi-employer pension review. It can show up as a 7-figure surprise three months post-close.

Jason's take
"ERISA is the silent deal-killer. Treat it like senior debt diligence."
Jason Powell · ERISA & Benefits Diligence
Capital after close

The deal is one thing. The capital that opens up after close is another.

Most independent sponsors solve the closing capital and then run into the post-close capital problem alone. The capital markets relationships that matter at month 18 are part of this practice.

MONTH 18
Senior refi
MONTH 24
Dividend recap
MONTH 36
Growth equity
YEAR 4–5
Strategic exit
WORK WITH JASON

Bring the marketing agencies deal. Get ERISA & Benefits Diligence done right.

Direct counsel from a securities and M&A attorney with billions in structured transactions, the independent-sponsor-native playbook, and the capital markets network that opens up post-close.