Webinar recording: What’s next for media M&A in 2026?

9 October 2025 / Insight posted in Webinars

We recently hosted the latest in our series of webinars and events, exploring the trends shaping the media M&A market. This session focused on how macroeconomic factors are impacting buyer strategies and highlighted the capabilities most sought after by acquirers active in the sector.

We are delighted to share our key takeaways from our speakers Frazer Barrs, Head of Media at Barclays Corporate Banking, Adrian Talbot, Chief Financial Officer at Miroma Group, Indre Edge, Investment Director at Sovereign Capital Partners, Paul Winterflood, Head of Media Corporate Finance at Moore Kingston Smith, George Hatswell, Director, Media Corporate Finance at Moore Kingston Smith, and host, Esther Carder, Head of Media at Moore Kingston Smith.

Market overview

• The media landscape is a mixed picture; the year started on a pessimistic footing, with agencies forecasting less than 5% revenue growth according to our January 2025 Outlook Survey. Sentiment has somewhat improved through the year with our June 2025 Outlook Survey reporting improved revenue growth forecast for the year of close to 6% .
• The environment remains turbulent and is rapidly changing, providing opportunities for smaller companies who are often agile enough to offer a new product or solution that can deliver growth. Companies that have a good value proposition and are targeting the right clients with the right capabilities are proving the most successful at riding out the storm.
• There has been a noticeable increase in the delay between securing new business and its launch, particularly with big clients. This slows down revenue flow, whilst also complicating resource planning.

M&A landscape

• Given the macro-economic volatility, the M&A landscape remains cautious. Some sellers are delaying transactions until their trading is improved. Acquisitions tend to be bolt-ons rather than large transformational deals.
• According to accepted timelines, the investments made by PE during the strong market of 2021/2022 would usually be exited around now. However, since many of the businesses are unlikely to have performed in line with their value aspirations, there seems to be a trend of PE staying within these businesses for longer to seek the desired returns.
• There is considerable funding available in the market. PE dominates the space with 55% of deals in the last quarter including PE involvement, reflecting a trend that we have seen over the last 4-5 years.

What key capabilities are most sought after by acquirers?

• Social
• Strategic communications
• Experiential
• Performance/media buying
• Creator economy & IP ownership

What are PE houses looking for in an investment?

• Recurring revenue
• Strong management team
• Differentiated proposition
• Buy & build opportunities

Valuations in the marcomms space

• If anything, valuations have increased for those businesses that have the right proposition and capability backed up by strong financial performance.
• If a business is not in a strong position, valuations are depressed and acquirers will seek to manage risks through the deal structure.

Is there lending available?

The appetite to lend is unchanged. Given the lower transaction volumes, there is significant capital to deploy.

How will the Budget impact M&A?

• The Chancellor hasn’t ruled out increases to corporate business taxes, which feeds into the current uncertainty for businesses considering an exit. We will host a webinar to assess the bigger picture of the Budget once it has been announced in November.
• Other considerations for the timing of any deal (but not having strategic implications on a transaction) include:
  Business Asset Disposal Relief further increase from 6 April 2026
• Business Property Relief cap from 6 April 2026

Top tips for media businesses considering a transaction

1. Plan early! We recommend to start planning around three years before your exit in order to give enough time to implement changes. Our agency exit programme helps you focus on the right areas.
2. Engage in early conversations so that you can build relationships with potential buyers.
3. Be able to show you are at the cutting edge. AI cannot be a threat to your business.
4. Make sure your business is on a secure footing before you set out.