Carpe that Diem
Clearly, at that lovely intersection where B2B, content and tech overlap, the time is now. But to make the most of that, we needed some help. Case in point: opening the New York office was an eye-opening experience. (Our eyes were opened specifically to let the US Immigration Service, HSBC Bank and the Internal Revenue Service stick their sharp, nasty sticks into them. Then move them around. And in and out. A lot.). This simple act of expansion took a huge amount of management time and energy, sucking away a disproportionate amount of mojo. If growth was going to look like that, we either had to forego growth (no fun) or find some help.Then Next 15 came along.
Next 15 is an independent digital communications group that’s listed on AIM. They have nineteen or twenty agencies, each with a clear focus, addressing an important part of the marketing ecosystem, and each steered by a great management team. The group is run by CEO Tim Dyson – a hugely respected veteran of the marketing wars (he grew Text100, the best tech PR agency out there, into a global powerhouse; worked on major programs for clients like Cisco, IBM and Microsoft; and did things like take the group public). It’s chaired by Richard Eyre, one of the UKs’ most respected business people (ex-CEO of ITV, and Capital Radio among many, many other things – he also chairs the UK Internet Advertising Bureau). Stan has known Tim for years (he used to compete against him when Stan ran Brodeur PR) and has always had a lot of respect for him. A super-smart, almost-suspiciously-nice person who’s motivated by the same things that motivate us: helping clients run circles around their competitors; building something special; and working with amazing people who care a lot about what they do. In our very first meeting, Stan and I knew that ‘these are our people’. Peter Harris, the CFO was straight, honest, unassuming and funny. Subsequent meetings with Tim, Richard and the heads of a few of their agencies confirmed it: this is an ego-free zone full of smart, nice, motivated people who know their stuff. We wanted to be a part of this.Game on
We then entered the deal part of the deal. Stan had done this before, when Omnicom bought Brodeur. For me, it was a new experience. I’d been warned about how difficult the whole negotiation process could be. And how painful the ‘due diligence’ exercise was guaranteed to be (Peter Harris’s metaphor was, ‘We’ll come in and have the floorboards up.’ Boy, did they.) I guess I pictured an adversarial process with lots of name-calling and lawyer-breast-beating and flouncings out of meeting rooms. What actually happened was a systematic, friendly and pretty unemotional negotiation of the hundred-odd points to agree (from valuation issues to ‘conduct of business’ stuff and everything in-between). Instead of an adversarial courtroom drama, I saw two teams working hard to find a place called Fair. It was actually fun to be a part of. The Next 15 folks do their due diligence and negotiations with a small, in-house team, so they have it down to an artful science with minimal bullshit. (Thanks, Nick, Nick, Peter, Richard, Niamh and Mark). On our side, we had a truly great team of advisors:So what does all this mean?
For Velocity, it means:- The reach and resources of a strong group.
- A global presence when we need it.
- New opportunities for our people.
- A bit less pressure on Stan and I (but only a bit) so we can take our virtual foot off the brakes and grow this sucker.
- Everything you like about Velocity (it’s business as usual but more so).
- Some cool new things we didn’t do much of before but now can really bring to the table (like programmatic media, channel marketing, PR and influencer marketing, market research, deeply technical content, ABM and experiential to name a few).
Woo-hoo!
Velocitoids make fun of me for, well for lots of things, but one of them is my over-use of the phrases ‘Onward and upward’ and ‘Damn the torpedoes, full speed ahead!’ (mainly to end meetings that are just kind of petering out). Well, both phrases are very much in our hearts right about now. We can see onward and have a good idea about how to turn it into upward. And, with Next 15 behind us, we feel far more able to damn any torpedoes and steam ahead at, if not full speed, a very nice pace indeed. If you’re reading this, you’re probably a friend of Velocity. Thank you for being that. We hope you’ll continue to be a friend over the course of these next, exciting chapters. (And that you’ll tell us if you think we’re changing in ways you don’t like). TL:DR – Velocity has sold to Next 15 and we’re really happy about it. Now get back to work, you lazy bastards.Enjoyed this article?
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Comments
Natalie Smithson Bobbin About July 11th, 2017
In truth, I know very little about Velocity, but I stumbled across a blog post one day and got kinda hooked. I’ve been reading your posts and following your journey for a few years now and when I saw your tweet about the acquisition, my heart sank… until I read this post. There’s so much positivity and so much promise. I don’t know why for a second there I thought it would be anything else. Congratulations! I look forward to watching what happens next 🙂
Doug Kessler July 11th, 2017
What a lovely note.
Thanks Natalie!
I had the same kind of misgivings when I thought about finding a buyer, but I really think we got lucky and found the right home for us.
I’m genuinely excited about the next chapter. Who knows where it will take us?
Thanks again.
Chris Wilson July 11th, 2017
Huge congrats to Doug, Stan and the whole Velocity gang! Sounds like you’ve joined a good wider team – which is the most important thing having been through my own share of M&A bedlam some years ago.
.
Doug Kessler July 11th, 2017
Thanks, Chris!
(We’re feeling great about it.)
J.C. Honey July 11th, 2017
Deepest congratulations.
Doug Kessler July 11th, 2017
Thanks, J.C.!
Go make.
Steve Ward July 11th, 2017
Wow this is amazing news – well you certainly make it sound that way! And I believe you!
Sounds like a great plan all round, and nobody deserves a proper leg up more than you guys. A terrific bunch of people with a whole stack of brilliant gifts.
Good luck on the exciting journey guys.
Still my favourite marketing agency.
Doug Kessler July 12th, 2017
Thanks, Steve!
Really appreciate that.
And you’re still our favourite talent pro.
Laurie Wood July 11th, 2017
Awesome! Onward and upward indeed!!
Doug Kessler July 12th, 2017
Thanks, Laure.
Onward feels best when it’s upward.
Except on a bike.
Or a SCUBA trip.
(Although, then you will need to go upward at some point).
Anyway, thanks.
Andy EF July 12th, 2017
Congratulations @Doug and @Stan and the rest of the @velocity team! Slightly surprised, but then again not so much. Sounds like the beers are on you!
Doug Kessler July 12th, 2017
Thanks, Andy!
Feels like the right move at the right time.
Two days later, and it’s business as usual.
Back to doing what we love!
I’ve been hitting up the Gratitude series on my Calm meditation app: I can’t even count the things I’m grateful for.
Rob RMA July 12th, 2017
Well done Stan, Doug and the team. Smart, talented and super hard-working – you deserve it. I’m sure NY will be a success too.
Doug Kessler July 12th, 2017
Thanks, Rob!
Much appreciated.
Hope to see you for a pint sooner rather than later.
Ten years is probably too long!
Joakim Ditlev Content Marketing DK July 12th, 2017
That’s great news! Big congrats Doug and co. Looking forward to your next blog post: 10 Insanely Honest Bean Counter Jokes 😀
Doug Kessler July 13th, 2017
Thanks, Joakim!
Great idea…
#7) Accountant walks into a bar…
Trish DirectionGroup July 20th, 2017
From one agency owner to another – many congrats, a super achievement. Looks like a great partnership – here’s to future successes
Trish @ DirectionGroup
Doug Kessler July 20th, 2017
Thanks, Trish!
Much appreciated.
Paul Ford July 21st, 2017
Probably the greatest M&A post ever written – congrats and don’t go changin’ (too much)
Doug Kessler July 21st, 2017
Thanks, Paul!
We like playing with well-established genres (like the M&A post).
Did a spoof version of the ‘Sorry to see an important executive go’ press release a while back:
https://velocitypartners.com/blog/analyst-bastards-poach-stinky-head-skinner-from-top-agency/
Chris Bagnall Pulse July 21st, 2017
Well done guys and congratulations. You’ve chosen a great partner in Next15 with a good rep. As you say, a good choice in comparrison to some who came knocking!
Look forward to seeing what you guys do Next…
All the best
Chris Bagnall
Pulse
Doug Kessler July 23rd, 2017
Thanks, Chris!
Here’s to the Next…
Celeste Beaufort Group July 21st, 2017
Wishing you and your team every success. Cx
Doug Kessler July 23rd, 2017
Thanks, Cx. Much appreciated.
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