TREVOR MORRIS - QBO
’There are three key issues here. First, will there be any shared
culture between the companies involved? The answer is almost certainly
not. One-stop shops might claim some kind of unity of purpose but if the
only logic is money it lacks something. The second problem is egos -
people who have built companies that are large enough to be worthy of
involvement will have substantial egos and need either a substantial
pay-off or will want to be top. Third, there is a danger that the whole
will actually be less than the sum of its parts. It always seems like a
good idea but if it is, why has it not yet happened? It looks logical
but it does not cater for the emotional aspect of running a
business.’
ALEX SANDBERG - College Hill
’This idea is not exactly new and it has had mixed results. It did not
work for City and Commercial but it is working for Citigate and I expect
it will work for Lighthouse which bought Financial Dynamics among other
things. The key is management of the different parts -will they work
together over a period of time? The last time I looked, the Stock
Exchange was only interested in companies where the management has
worked together for some time. There are cost savings and there is the
opportunity of cross-selling, but wouldn’t like-minded souls prefer to
do it for themselves?’
DAVID HARGREAVES - Firefly
’It could be a good idea for the top independent agencies across Europe
as a lot of clients are looking for the best of breed in each
sector.
I can also see the value of doing it with other marketing service
agencies that are focused on the internet. Because of the value of those
companies in the digital economy, the value would be greater than the
sum of its parts. I cannot really see the value of it for companies that
are competing.
We have clients now from companies in the financial service and retail
sectors so we would be in competition with other agencies in those
sectors.
Technology is taking over businesses, so although we are not competing
head on we are still talking to clients in the same sector, for example
if Tesco want to know how to promote on-line shopping.’
JONATHAN CHOAT - Nexus Choat
’It is impossible to put together a highly individual group of
entrepreneurs unless they are prepared to accept the leadership of an
individual - and who will that be: Tim Trotter? If you want to float an
agency you need to be making at least pounds 5 million revenue or the
costs involved do not make it worthwhile. So you would need a group of
agencies making pounds 1 million a year and those companies are making a
nice little turn and are unlikely to want to surrender their freedom.
For it to work you need bigger companies with turnovers of pounds
5-pounds 6 million, then you might find it possible. If you could do it,
I do think it would be worth more than the sum of its parts because you
would be able to present the City with a real profit stream.’
