Industry Commentary: Lead Generation Agencies Robust M&A Market in a Fragmented Industry

CHICAGO, Feb. 28, 2019 /PRNewswire/ -- The U.S. lead generation ("lead gen") agency industry has been experiencing significant merger and acquisition activity as over 100 transactions have occurred since January 2016. The deals are being driven by compelling industry dynamics including a high degree of fragmentation, specialization, strong cash flows and a growing underlying lead gen market.  In a recent survey, 70% of marketers say their lead gen budgets will increase and 34% say their spending will grow by more than 20%.  Direct mail, contrary to expectations in the new economy, is performing the best since 2003. Digital advertising now represents almost half of the $208 billion spent on advertising.

The lead gen industry is fragmented with companies operating differentiated business models.  Broadly consisting of more than twenty-one thousand businesses, lead gen agencies include pure play sellers of contact lists, originators and sellers of leads, predictive modelers, content creators, website designers, SEO specialists, print mail houses, providers of direct mail advertising services, traditional advertising agencies and many companies with multiple business strategies.  The Colonnade U.S. Lead Generation white paper largely focuses on companies that originate leads and develop predictive models. 

The industry presents a compelling investment opportunity for both financial investors and industry incumbents.  We anticipate continued robust deal activity over the next 18 months as financial investors are attracted to the fragmented ecosystem, high cash flow margins and the expanding market size as operators look to dominate verticals, diversify channels, expand capabilities and grow geographically. 

In its latest industry commentary, Colonnade Advisors explores in depth the trends, growth drivers and M&A in the Lead Generation industry.  For the full industry commentary, see www.ColAdv.com.

About Colonnade Advisors

Colonnade Advisors is a boutique investment banking firm that specializes in merger and acquisition advisory services. Since our start in 1999, we have completed over $7.5 billion in transaction volume. We provide financial advice to clients in the financial services and business services sectors. We advise business owners in selling their companies, buying competitors and raising capital. For more information, visit www.ColAdv.com.

Contact:
Gina Cocking
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SOURCE Colonnade Advisors