Recent M&A activity in the lead generation industry has been characterized by a focus on acquiring firms with advanced data analytics and AI capabilities, as these technologies are critical for optimizing lead management and marketing efficiency. The market remains attractive to private equity investors, particularly due to the sector's recurring revenue models and high margins. Recent deals reflect a strategic push towards consolidation, with larger firms expanding their technological offerings and vertical integration through acquisitions, positioning themselves to dominate in an increasingly competitive digital marketing landscape. Looking ahead, we expect the pace of consolidation … [Read more...]

Marketing Technology, also known as MarTech, describes a range of software and tools used in marketing and is an estimated $149.7 billion industry in the U.S. and the U.K., broadly defined. MarTech assists with marketing workflows, customer acquisition and retention, brand and communications, content and social, and data and analytics. There are over 4,000 companies providing marketing technology in the U.S. In that universe, Colonnade estimates that 2,500 are companies exclusively focused on MarTech. … [Read more...]

Today, marketers are searching for innovative solutions to break through the noise to reach consumers in meaningful ways. In this COVID-19 environment, more consumers are at home to receive mail and phone calls and browse digital materials aimed toward customer acquisition. The lead gen industry now totals $26 billion, up 18% over 2018. The digital segment is growing faster (up 33% year over year) than direct mail and represents more than 60% of the overall lead gen market. The emphasis on digital lead gen solutions indicates that data analytics, rather than the data itself, is where the value lies. Companies that provide high value data analytics and tools are increasingly valuable and … [Read more...]

The U.S. lead generation (“lead gen”) agency industry has been experiencing significant merger and acquisition activity driven by 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. … [Read more...]

Contact center operations (“CCO”) are an integral operational component of service companies. CCOs handle a range of critical functions, including customer service, telemarketing, technical support, and debt collection. CCOs are utilized across several industries, from insurance and financial services to technology and telecommunications. Some business models, such as direct-to-consumer vehicle service contract (“VSC”) sales, are entirely dependent on contact center operations to originate sales and provide customer service. Players in the VSC sector, as well as several other industry verticals, are currently “in-house” their contact center activities, presenting a compelling growth … [Read more...]

The healthcare linen rental industry is attractive to private equity and strategic buyers. A recent flurry of M&A activity indicates continued inflows of capital to the sector and acquisition activity. The industry is fragmented, companies have predictable recurring cash flows at 10%-15% EBITDA margins and opportunities exist for margin enhancements in consolidation (or privatization) transactions. … [Read more...]