Clear weighs up acquisitions in Scotland and England
Clear Marketing has revealed to The Drum that it is on the acquisition trail in Glasgow and Manchester and in early talks with "a couple of small agencies".
The Manchester-based agency has four staff at its office in Glasgow but its managing director, Jim Smith, wants to swell the Scottish ranks to a team of upto 20-strong over the next two to three years.
Smith said: "Scotland is a definite area of interest to us. We're quietly looking at as many businesses as we can to see if there might be the basis for some discussion [about acquisitions].
"People will say the Scottish market, there's a lot of very good agencies, not enough clients and it's over-serviced. But we think there's a space for an agency like ours in Glasgow, otherwise we wouldn't be working with the likes of Real Radio, Cala Homes and McArthurGlen in Scotland."
Smith confirmed that the agency has also held formative discussions with small agencies in Manchester about possible acquisitions, but he stressed these are still in "early stages at the moment".
He hinted that likely acquisitions could be digital or business to business specialists.
"We're talking to a couple of people in Manchester, and people have talked to us. We've got a very open mind about people approaching us."
Smith said he was not surprised to be approached by agencies looking to be acquired given the turbulent state of the economy.
"Acquiring new business is as difficult as it's ever been, clients aren't moving around as much because they're wanting to consolidate and there has to be some consolidation in our industry too.
"We've already seen agencies either downsizing significantly or going out of business altogether. There's going to be more - there may be 60 design companies in Manchester and they won't all survive.
"If there's going to be some consolidation then it's a good opportunity for likeminded people to get together, share costs, position themselves in an agency that's got some critical mass and move forward.
"We may not get into bed with anybody, but all we're saying is we've got an open mind about it and it's got to be a strategic option for any business."