58-my-best-deal 2.qxp 22/4/09 15:25 Page 58
THE LAST WORD
My best deal…
RICHARD GLASSON, CEO OF MARKETING AGENCY GYRO INTERNATIONAL,
ON GRABBING MARKET SHARE AND THE LURE OF INTERNATIONAL MARKETS
T
he marketing sector naturally different business conditions. It would be made to the management structure.
lends itself to consolidation hard to get bank finance now if a credit We have a fantastic new creative director,
because it’s entrepreneurial by line wasn’t already in place. We are and managing director Danny Turnbull was
nature. It’s a creative industry and in fortunate to have one, so we would given the authority to carry out the changes.
my view there’s constant change in the definitely be able to handle a transaction The financial results of Cicero, now Gyro
market, and larger companies will like that again. I think there is value to be International, have improved dramatically.
always want the expertise of had out there and anyone with the right We’re probably making five or six times the
innovative entrepreneurs. kind of management and access to finance profit we were when we bought it.
Whether that consolidation can definitely take advantage. We received US private-equity backing
takes place in January 2008.
principally in the
“I think there is value to be had out there and anyone with
This has given us
UK is questionable the ammunition to
as there are many the right kind of management and access to finance focus on some large
emerging markets
can definitely take advantage”
transactions, which
that people will be may take place in
concentrating on. the near future.
In March 2007 we acquired Manchester- TEETHING PROBLEMS We’re certainly looking at expanding in
based B2B marketing agency Cicero In addition to realising our expansion goals, North America and entering emerging
Marketing Communications, which turned we transformed Cicero. The two owner- markets in the Far East and South
over more than £6 million at the time. managers and some of the senior America, so watch this space. ■
This transaction was a turning point for management team left after the deal was
the company as it boosted our market completed, which meant we had to make
share and cemented our position as the sure we could work with the new team but
largest business-to-business marketing also ensure that there was no great
agency in the UK. The acquisition also reliance on the previous owners.
gave us a presence in Manchester, more We soon realised that the former
than 300 staff worldwide and revenues of directors had been getting the
some £50 million. business in shape to sell. They
We paid 60 per cent in cash to Cicero’s had focused on short-term
three main shareholders and 40 per cent decisions, some of which
in Gyro equity to the other shareholders. were limiting the potential
The fact that all of the continuing of the company. This was
shareholders rolled 100 per cent of their not the only problem –
equity investment into Gyro showed that Cicero was an amalgamation
they believed in the future of Cicero as of different agencies, and a
a part of the new group. central culture had to be
Of course, the deal was made under very imposed and some big changes
58 Mergers & Acquisitions
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