MDC Speeds Growth As Strategic Move


New -- somewhat rebel -- communications/advertising agencies companies have different growth speeds.

When it comes to Miles Nadal, chairman/CEO of MDC Partners, his group's rapid rise -- buying up some 20 varied creative, media and digital agency acquisitions in the last three or four years -- comes from passion and timing. 

Nadal quotes billionaire financier Warren Buffett. "It's not that complicated," he says, speaking at American Association of Advertising Agencies Transformation LA event. "You should be greedy when others are fearful, and fearful when others are greedy."



Recently, MDC Partners took a majority stake in media agency Targetcast TCM and created the Maxxcom Global Media group, pooling resources of its other recent media agency acquisition, R.J. Palmer. It is estimated that Maxxcom will have annual media billings of $1.5 billion 

Nadal doesn't think MDC Partners resembles one of the basic traditional roles when it comes to being an acquirer of other communications agencies.

"We don't see ourselves as a holding company," says Nadal. "We see ourselves as a strategic partner. We invested $35 million to help our partners expand globally."

Nadal believes this formula is part of the reason that MDC has achieved a growth rate that is triple that of other organizations. "For us [agencies] having skin in the game is as much emotionally as financially."

Buz Sawyer, president of the U.S. division Cheil Americas of South Korean-based Cheil advertising group, also speaking at the 4As, believes sometimes it is better to wait. Sawyer says the group has $100 million to make acqusitions in the U.S.

"We are looking for a good communication company," says Sawyer. "We are reverse engineering." Cheil is already big in China and India among other places, he notes.

Next story loading loading..