LOS ANGELES: PR consigliere Michael Sitrick has hired investment
bank Wasserstein Perella to explore the sale of his communications firm
Sitrick & Company.
Sitrick has long championed the crisis and IR firm's independent status,
but has reportedly been approached more frequently lately by leading
global communications firms. He was not available for comment.
Sitrick & Company maintains a staff of about 40, and is one of the few
heavyweight independents on the West Coast. The privately owned firm
reportedly charges some clients $450 an hour. And while it does
not make revenue figures public, one source estimated annual billings at
approximately $10 million. It also is somewhat protected from the
economic downturn, given its bankruptcy work.
Abbot Jones, a managing director at AdMedia Partners, warned: 'Prices
are not going up any further. Current negotiations are more about how
much of the deal is contingent on a company's success rate over
As well as advising on potential offers, Wasserstein Perella could be
looking at the effect Sitrick's employee stock ownership plan would have
on a deal. The firm's West Coast location also could affect its value,
though it has satellite offices in New York and Washington, DC.
Sitrick has helped lawyers represent Los Alamos National Laboratory
scientist Wen Ho Lee to the media and battled ABC's 20/20 for client
He taped the network's interview with Metabolife and aired it on the Web
ahead of the broadcast.