Elvis Communications — Acquisition by Next Fifteen Communications Group plc
UK-based integrated creative agency acquired by Next Fifteen Communications Group, illustrating how established blue-chip client relationships, healthy profitability and strategic fit can support valuation multiples for profitable independent creative agencies.
Acquirer
Next Fifteen Communications Group plc
Year
2017
Enterprise Value
£5.5m
Revenue
£5.3m
Adjusted EBITDA
~£1.0m
EBITDA Multiple
5.5×
Industry
Creative & Design Agency
Transaction
Next Fifteen Communications Group acquired Elvis Communications, a UK-based integrated creative agency, in September 2017. The transaction involved consideration of £5.5m, including £0.5m deferred, representing 5.5× adjusted EBITDA of £1.0m on revenue of £5.3m. Elvis was an established creative agency working with major consumer brands, with clients including Cadbury, Honda, Stella Artois and Kenco.
Why the Premium?
- Established blue-chip client base
- Healthy profitability (~19% EBITDA margin)
- Strategic fit within the wider group
- Integrated creative and digital capabilities
SME Takeaway
At 5.5× adjusted EBITDA, Elvis demonstrates the type of valuation that an established creative agency with strong profitability, recognised clients and strategic value to an acquirer can achieve. For SME creative agency owners, the transaction highlights how recurring client relationships, strong margins, recognised brands and strategic buyer fit can support valuation multiples. The transaction multiple is a buyer-reported multiple rather than an independently estimated multiple.
Disclaimer: Case study figures are based on publicly available information and are provided for illustrative purposes only. Transaction values, EBITDA figures and implied multiples may reflect different reporting periods, definitions and deal structures, and some multiples are calculated from disclosed figures rather than reported by the parties. They are not formal valuations, investment advice or a substitute for independent professional advice.