Agency Growth, M&A & Transformation 17th November 2025
We are seeing a clear pattern for agency success and a compelling roadmap for growth. The landscape is consolidating and forcing a necessary evolution of the business model.
What’s Driving Success?
Diversification: Winners are building resilience through diversification of clients, services, and markets, underpinned by strong client relationships.
Smarter Resourcing: The focus is shifting from large permanent teams to an agile, multidisciplinary structure that combines senior staff, great client services, and a flexible delivery model to match client resourcing needs.
The Key Model Shift Agencies Must Make
Move beyond the purely people-based /time-and-materials model. The future is a mix of building IP, adopting a product-led approach, and a laser-focus on Return on Investment (ROI).
AI Implementation is now critical for improving business operations value to clients.
Opportunities for Growth
M&A for Scale: The fastest path to scale and margin efficiency is often through strategic acquisitions or merges, given the significant industry consolidation.
Structured Pipeline: Opportunities exist in formalising client management/relationships and building a robust marketing engine to develop revenue pipelines.
Valuation Focus: Business valuation is anchored in demonstrable sustainable profit margins, valuable IP, the ability to scale/adapt, and talent that understands future client needs.
M&A deals shaping the landscape
Adobe bolsters AI marketing tools with $1.9 billion
Semrush buy Salesforce acquires Informatica for $8bn to enhance Agentforce
CAA Acquires Licensing Mainstay Beanstalk
If you want to learn more about how to build strong foundations around client services, future organisational charts, building IP, operational efficiency through AI, and marketing to drive growth, get in touch hello@bluhalo.com.
