Jonathan Goodale Promoted to Chief Business Development Officer

Jonathan Goodale Promoted to Chief Business Development Officer

London, UK, March 7, 2022 – JEGI CLARITY, a pre-eminent M&A advisory firm for the global media, marketing, information and technology industries, headquartered in New York, NY and London, UK, is pleased to announce that Jonathan Goodale has been promoted to Chief Business Development Officer, with responsibility for the EMEA region.

Since joining the firm in 2014, Jonathan has spearheaded the firm’s business development, origination and marketing activities in EMEA and APAC.

Jonathan will continue to work alongside the global leadership team to cultivate the firm’s growth strategy and build brand presence by developing relationships with prospective clients, investors and wider network.

Prior to joining the firm, Jonathan was an Associate Director in UBS’s Wealth Management division and before that a Financial Adviser with Bank of America Merrill Lynch.

Jonathan holds a BSc Econ in Economics and Management Studies from Cardiff University and is a CFA Charterholder.

Esports Sector Update

Esports Sector Update

Key Takeaways

Gamers and Other Super Users are an Attractive Audience

  • Gamers belong to an attractive demographic: young, affluent, educated, and technologically savvy
  • Gamers are highly aware and proficient in using cutting edge technologies such as NFTs and crypto – the space is an excellent incubator for new tech

Super Users tend to be younger and more affluent than their counterparts, making them more valuable to technology and media companies

Strong secular growth potential

  • The gaming industry has double-digit growth historically and very strong growth prospects going forward
  • Overall strong growth attributable to increases in both: spend (p) and audience (q)

Outperformance through Covid

  • Gaming revenue grew +20.0% (+11.2% outperformance) in 2020
  • 80% of business in esports and gaming see covid as a positive impact on their business, creating a new watermark

COVID has accelerated the capture of prevailing esports audience growth trends furthering the paradigm shift towards interactive digital media consumption

More than games

  • 60% of gamers have participated in a non-gaming activity or event inside a video game engine within the last 12 months
  • Event types include watch parties, concerts, graduations, visiting virtual recreations of real-world locations

Highly attractive business models ripe for investment

  • Gaming and esports businesses have high growth potential and scalable operations
  • High-quality assets are at the critical inflection point of achieving profitability and generating cash flows
  • All stakeholders are looking for partnerships to scale the business to the next level – find the business within the science project

Q3 Public Market Update

Q3 Public Market Update

Key Takeaways

Total equity market value down by 2% since July 2021

Following strong growth through early 2021, the Media, Marketing, Information & Technology equity markets encountered some turbulence towards the end of Q3, leading to a drop in value over the period of 2%, in line with benchmark indices which have fallen by 1-3% over the same period.

2021 revenue growth of 17% across all sectors

2021 forecast revenue growth remains robust across all sectors at 17% vs. 2020, led by +28% growth across e-commerce and digital media, and in particular verticalized e-commerce and publishers & lead generation.

2021 EBITDA growth of 36% across all sectors

Strong outlook for 2021 EBITDA growth continues, with virtually every sector expecting double-digit growth vs. 2020, other than for specific sub-sectors which continue to experience fall-out from Covid-19 (e.g. Events).

Macro-economic growth concerns have led to recent declines in the public equity market, however, Q3 2021 earnings season will provide further sector specific insight into how the wider macroeconomic trends are affecting individual companies across these sectors.

The total market value of the Media, Marketing, Information and Technology Sectors has decreased by 2% since July 2021

Market Research Sector Update

Market Research Sector Update

Key Takeaways

Sizable global market at $40B

Increasing to $80B with addition of analytics meaning ample addressable market to chase and capture.

M&A activity in the sector is increasing

Consolidation from existing players and increasing appetite from Private Equity is driving activity in the space.

Spend on research is recovering quickly

Companies need a better understanding of post-2020 markets and how consumers now think and feel.

Marketplace winners will optimize core market research while positioning for success in digital and data

Companies that can provide business leaders with agile, data-backed market analysis across media platforms are expected to be the most successful.

There is a sizable opportunity at the convergence of traditional research advisory, user experience, customer experience, experience management, and digital transformation.


M&A playing an active role

Large scale consolidation is reshaping the landscape as digital agencies, consultancies and SaaS vendors encroach on market research budgets.

Recent sector transactions

As vendors vie for scale, growth, and wallet share – advertising agencies have increasingly acquired market research companies to pursue value added services and new capabilities.


The existing sector landscape is evolving as market players focus on new opportunities

Global agencies and measurement companies are exposed

  • Businesses with flat and declining revenues are looking at cutting costs and resources leading to vulnerable accounts and talent drain.
  • M&A activity is increasing as a result with businesses looking to divest, restructure or hold for sale.

CX technology vendors are taking mind and wallet share

  • SaaS vendors are seeking access to enterprise client relationships and channel partners.
  • These vendors are also able to turn up the M&A where others cannot compete on price.

Large scale consolidation reshaping the landscape

  • Firms looking to return to growth through scale as well as bridging the current gap between research, insights, and marketing.
  • Service set expansion pursued as a way to increase mind and wallet share.

Large cap Private Equity active in the sector

  • Private Equity are being attracted by the sizable, fragmented, and disrupted market.
  • They understand the value of research and are recapitalizing to help re-define the market for a digital era.

Power of 5: The Digital Transformation Series

“Power of 5”
The Digital Transformation Series

5 Leaders, 5 Questions, 5 Minutes

The Digital Transformation Series

Introducing our Power of 5 series. We ask 5 industry leaders 5 questions in 5 minutes to gain insight on how they are succeeding in today’s market.

In this series we focus on Digital Transformation. The rate of technological change is high and constant and global brands are increasingly looking to third party experts to help them keep up. From technology consulting to strategic marketing services, the market continues to grow and continues to focus on all things digital.

Over 5 weeks we interviewed 5 select leaders from global agencies who all serve international brands. Topics of discussion included, current challenges facing clients, learnings from 2020, and M&A criteria going forward.

Key Takeaways

  • 2020 has accelerated digital transformation across all areas of marketing spend and working practices
  • Measurability: performance marketing is increasingly important given the race to digital in all facets of the marketing mix
  • First party data is becoming central to marketing strategies particularly in light of the death of the 3rd party cookie
  • Ecommerce has gone from important to critically important for clients
  • Technology and brand need to be aligned more so now than ever before
  • Cultural fit and strategic alignment remains a key factor for M&A decision making across the board

Speakers

Dan Gilbert, Global CEO, Brainlabs
Rob Pierre,
Co-Founder & CEO, Jellyfish
Zach Morrison,
CEO, Tinuiti
Wendy Clark, Global CEO, Dentsu International
David Jones, Founder & CEO, You & Mr Jones

Full Interviews Below

Dan Gilbert speaks with Jonathan Davis
Wendy Clark speaks with Marcus Anselm
Zach Morrison speaks with Jonathan Davis
Rob Pierre speaks with Marcus Anselm
David Jones speaks with Marcus Anselm

In today’s era of volatility, there is no other way but to re-invent. The only sustainable advantage you can have over others is agility, that’s it. Because nothing else is sustainable, everything else you create, somebody else will replicate.

Jeff Bezos, Executive Chairman, Amazon

Year to Date Market Update

Year to Date Market Update

Key Takeaways

Total equity market value up by 3% since January 2021

The Media, Marketing, Information and Technology public equity markets continue to perform well, with total market value up by 3% since January 2021, albeit against a broader market backdrop which has seen other benchmark indices up by 7 – 12% over the same period.

2021 revenue growth of 17% across all sectors

2021 forecast revenue growth remains robust across all sectors at 17% vs. 2020, led by +27% growth across e-commerce and digital media, and in particular verticalized e-commerce and social media.

2021 EBITDA growth of 18% across all sectors

Strong outlook for 2021 EBITDA, with virtually every sector expecting double digit growth vs. 2020, other than for specific sub-sectors which continue to experience fall-out from Covid-19.

Valuation environment remains robust with the Media, Marketing, Information and Technology markets having increased by 3% ($420bn) since the start of 2021. This is underpinned by strong forecast 2021 revenue growth across all sectors, with an average of 17% across the market, representing total incremental revenue across the market of nearly $450bn


The total market value of the Media, Information and Technology Sectors has increased by 3% since January 2021

Following strong growth in 2020, E-commerce and Software have both seen a slight contraction in total market value (TMV)

  • The main drags on TMV growth through 2021 YTD have been e-commerce and Software. Whilst the growth outlook for these sectors remains positive, both sectors previously saw an exceptionally strong H2 2020, with TMV growth of 30% and 19% respectively
  • Investor demand for businesses exposed digital transformation solutions and best-in-class CX is similarly reflected in TMV growth in both Tech & Consulting Services (up 6%) and Insights (up 10%)
  • The Digital Media sector also continues to benefit from powerful tailwinds, including strong and growing  demand for digital engagement. It has continued to outperform, up 13% ($3,544bn of TMV) over the period

Forecast 2021 revenue growth of +10% for many sectors

  • Current market forecasts show robust 2021 revenue growth across virtually all sectors, driven by powerful tailwinds across many sub-sectors and a “bounce-back” in revenues in those sectors most severely affected in 2020
  • Total revenue growth from 2020 to 2021 is forecast at c.17%, representing an aggregate increase in revenues across all sectors of close to $450bn, with double-digit percentage growth expected across many sub-sectors

Driving double-digit EBITDA growth for 2021

  • The strongest growth of 36% is expected for e-commerce, showing a limited correlation with the change in TMV
  • Digital Media is forecast to be the second highest performer with growth of 32%, with Search and Social Media being the key drivers as both audiences and advertising dollars drive growth in the sector

Current market forecasts show that FY21 revenue growth across the Media, Information and Technology sectors is expected to be 17% fueling an 18% average EBITDA growth across the sectors in the same period

Media, Information & Technology: Public Market Perspectives

Media, Information & Technology: Public Market Perspectives

We have conducted analysis on the public international media, information and technology equity markets to explore how the broader segments and underlying sub-sectors have fared in terms of valuation and profitability YTD.

We have also analysed how businesses are viewing 2021 in terms of revenue growth projections and recovery.

Key Takeaways

Total equity market value up by 8% since January 2020
The Media, Information & Technology public equity markets continue to perform strongly, with total market value up by 8% since January 2020 against a backdrop which has seen other  benchmark indices fall 5 – 15%.

2020 EBITDA outlook revised down by aggregate $65bn
This growth in total market value has been achieved despite uncertainty around 2020 outlook which currently shows a material decline in the 2020 earnings; notably current. 2020 EBITDA market estimates have come down by $65bn since January 2020.

Average 12% revenue growth forecast for 2021 across sectors
From a valuation perspective, it feels clear that investors are looking through the 2020 numbers and pricing in strong recovery across virtually all sectors, with 12% total market revenue growth forecast for 2021.

From an M&A perspective, whilst the valuation environment remains opaque, it is clear that the strong stock prices which many corporates have sustained through this period will be highly relevant in terms of deal pricing, consideration, and structure.

To access the full report click here