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“ In many cases , it is actually more work to buy a $ 10m business than a $ 100m business . With the bigger business , you get more mature processes in terms of finance , product and HR . You get a deeper bench of talent . You probably have more serious auditors and better financials . All in all , it can be a lot smoother a process .”
Or as another affiliate industry insider who preferred to stay anonymous said : “ Catena was a game plan that was executed exactly as it wished . You buy strong assets and let them run at a high pace as long as possible but never have a plan to consolidate tech and other parts .”
THE GAME MOVES ON
Regardless of the track record on M & A in some quarters , the truth of the matter is that there will surely be more deals in 2024 as the relentless logic of the economics of bigger deals and larger entities continues .
Robinson certainly believes there is more to come . “ There ’ s a palpable uptick in activity which , barring any unforeseen black swan events , should persist for the next 18-24 months ,” he predicts .
“ I don ’ t think Catena was ever built to integrate and realise synergies ”
BEN ROBINSON , RB CAPITAL
“ As is typical with mature markets , consolidation often leads to a small number of entities gaining dominance in the sector . This might very well be the trajectory for larger affiliates .”
It seems certain the big will get bigger . Whether they necessarily get better , though , will depend on the behind-the-scenes work done post-acquisition .
iGB Affiliate Monitor February 2024