M+C Saatchi Group has announced that, following an extensive review of strategic options for its Australia and New Zealand advertising agency, the previously announced management buyout of the business, backed by private equity, will not proceed.
Following constructive discussions, it was ultimately determined that a transaction could not be concluded on terms acceptable to all stakeholders.
Following a period of due diligence, the proposed management buyout of M+C Saatchi Group Australia and New Zealand, which was to be backed by growth investment firm, Parc, will not proceed.
“While we are disappointed the proposed transaction will not proceed, we respect the outcome of the due diligence process,” said Adam Pozniak, co-founder of Parc.
“Parc remains committed to identifying and supporting independent, entrepreneur-led agency businesses in Australia and New Zealand. We will continue to explore investment opportunities aligned with our vision of building a modern, independent business across the region that meets marketers’ needs today and into the future.”
Parc will not be commenting further on the proposed M+C Saatchi Group transaction.
In light of the decision not to pursue the management buyout, M+C Saatchi Australia and New Zealand is in discussions with clients regarding ongoing work and where appropriate, the option to transition work to another part of the wider M+C Saatchi group.
This decision relates specifically to the Australia and New Zealand advertising agency business that was the subject of the proposed transaction and does not impact M+C Saatchi World Services, the government services and behaviour change agency, which will continue to operate in Australia and remains unaffected.
It was announced in July that M+C Saatchi had signed a term for a management buyout of its business in Australia and New Zealand.
The agency said the move was meant to mark “the beginning of a new chapter” for its Australia and New Zealand business.
M+C Saatchi’s business in Australia and New Zealand has been undergoing some hard times. Last year, it nixed its offline media buying capability through sub-brand Bohemia and largely offshored its M+C Saatchi performance arm.
It has also lost a succession of important accounts Tourism Australia, CommBank, Optus and Woolies. Though it declined to pitch for the latter.
M+C Australia reported a 31.9 per cent revenue decline in 2025. The global advertising group blamed the “significant Australia drag” and US Government shutdown for 7.3 per cent revenue drop in worldwide revenues.
