"A String of Pearls" - Exploring Organizational Motives and Challenges of Creative Agency Acquisitions by Leading Management Consulting Firms

Sammanfattning: Creative agency acquisitions by leading management consulting firms is a phenomenon that was recently discovered. Therefore, very few studies have explored M&As within this specific context. This lack of research is surprising because in today’s highly competitive environment businesses increasingly have started acquiring external creative capabilities to be able to provide end-to-end solutions in business, technology and now also creativity. This thesis explores why and how leading management consulting firms acquire creative agencies and how organizational members of both firms involved perceive the merger. To reach the aim of this study, a qualitative case study is conducted by following an interpretative, abductive approach. This research encompasses empirical material that was gathered by means of the conduction of eleven semi-structured interviews with managers in two merging organizations in The Netherlands, that serve as a prime example for the phenomenon. The main results show that the primary organizational motive for leading management consulting firms for the acquisition is to be able to keep up and respond to the fast-changing client demands whereas creative agencies largely search for an expansion of their portfolio, growth opportunities, stability for the company and improved employee benefits. Challenges that arise throughout the merger evolve around integration, communication, organizational structure and organizational culture. As this is the first study that presents results regarding an acquisition in a completely new context, a contribution is made to the Mergers & Acquisitions, Professional Service Firms and Creativity literature. Additionally, through the interpretation of the perceptions on the merger of both a management consulting firm and creative agency, this study is highly relevant for managers in these fields to gain an in-depth insight in which challenges might arise in a similar acquisition and how to possibly retain employees throughout the process.