Deal Brief Business Services - Candid Group

Deal Highlights

• IMAP Netherlands advised Candid Group B.V. on the purchase of Daily Dialogues.
• Founded in 2007, today Candid is the largest independent media group in the Netherlands. It is a platform for media, technology and creative agencies, with the objective of solving the increasingly complex issues of its customers. 
• With its acquisition of social media marketing specialist, Daily Dialogues, the company is looking to further expand its total marketing approach - smart, creative and technical. 
• Daily Dialogues is a Full Service digital agency, with a social DNA. 
• Following the acquisition, the company’s international team now comprises over 220 employees, spread across its offices in Amsterdam and Rotterdam. Daily Dialogues preserves its current Rotterdam office.

Market Outlook

• The global market for digital marketing is estimated to be worth approximately €306 billion by 2020. 
• In 2018, the estimated market size of Dutch Digital Agencies was over €1 billion, implying a 17.6% y-o-y growth (from 2017 to 2018). 
• Over 10% of the revenues of the Dutch Digital Agencies is achieved abroad. Therefore, opening a foreign office, or starting a strategic partnership with a global brand is becoming increasingly important.

Valuation Summary

• The transaction closed with an average valuation multiple, consistent with multiples
  seen in previous transactions in the Marketing industry.

IMAP Approach

• IMAP has been advising Candid Group on its acquisition strategy since 2017 and this recent transaction is its 11th since inception.
• IMAP Netherlands advised Candid Group throughout the transaction, performing key tasks including valuation, project management, coordinating the Due Diligence and negotiating the deal terms.
• Over the years, IMAP Netherlands has advised numerous digital agencies and as such, has gained significant experience and a deep understanding of the market. In October 2019, it will publish its Digital
  Agencies Sector Report.

Client Comment

“We’ve worked with the IMAP team on a number of transactions now. Their M&A knowledge, along with the experience of a great team of enthusiastic professionals, help us towards our goal of becoming the largest and most entrepreneurial MarCom platform organization in the world.”