Broker Roundtable: List Firm Merger Activity
Welcome to Broker Roundtable, where each week we ask list brokers to give their opinions on issues that matter to the marketing community. This week’s question: How much more intense is list company merger activity likely to get in the next year or so?
Our panel includes Geoff Batrouney of Estee Marketing Services Inc.; Becky Hagadorn of Carney Direct; and Michael Peterman of Veradata. Would you like to be considered to be a member of our roundtable? Contact Larry Riggs ([email protected]).
Geoff Batrouney, executive vice president, Estee Marketing Services Inc.:
I think we have not seen the end of consolidation, whether by merger, acquisition or attrition. The ongoing downsizing of what was the largest integrated list brokerage and list management company in our market is a source of continuing interest. I am sure that by the end of 2012 there will be fewer list companies, but for those of us that intend on remaining in this business, I suspect the companies will be very tightly managed and run. The one event that we can’t defend against—because we are not clairvoyant—is the surprising closure without notice. We witnessed one this month; let’s hope it is the last we see for a long time.
Becky Hagadorn, vice president, new business development, Carney Direct:
I’d like to hope we’ve seen the bulk of the merger activity. I’d also like to think the leaders and true rainmakers in our industry have seen the significant negative impact these mergers have had on the direct marketing business.
Michael Peterman, CEO, Veradata:
Based on our recent experience, there is a whirlwind of acquisition activity in our business. Infogroup and others have done a good job picking up names and executing their buy and build strategies. Given the economic challenges that are causing some ripples across the industry, the next couple years present an amazing buying opportunity for suitors and a bailout for some companies that are struggling financially. I predict the activity will be heavy and I think it will touch everyone in the business in some way. All sizes, all types, and even supporting organizations are fair game in the months ahead. It’s a fun environment to be a part of. As stressful as this much change can be, we exist in a transformative time and I’m looking forward to the fireworks in 2012.
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