Accenture is reportedly among a small group of bidders seeking to acquire MDC Partners. Agencies under MDC include Anomaly, 72andSunny, Assembly, and CP+B. There’s been a lot of speculation around MDC and its potential moves including selling itself, in whole or in part, to an outside investor. Included in the rumors are Deloitte and Bain Capital amongst others.
Some agencies within MDC have been trying to buy themselves out, but their offers have been getting rejected by MDC’s board of directors, which supports the theory that a buyout is likely.
With over $1 billion in debt and struggling to find ways to grow cash flows, MDC has limited options. If Accenture, or another consulting company, ends up acquiring MDC, it will be interesting to see what steps it takes to deal with the debt and restructure the company and agencies to optimize it for the future.
Why It’s Hot: With all acquisitions by consulting firms to enter the advertising and marketing space, it will be interesting to see how they deal with a holding company. The agencies they’d divest from the portfolio and the way they’d use the remaining agencies would be a good look at how they perceive the future of advertising and marketing.