Opportunities and Prospects in the Event Industry
Acquiring an established event agency offers exciting prospects in a creative and dynamic industry. After the challenges of recent years, the event sector is experiencing a significant upswing with increasing demand for live events, trade shows, and corporate functions. Particularly attractive are agencies with a loyal client base, an experienced team, and a clear specialization—whether in conferences, corporate events, trade fairs, or cultural events.
A key advantage of purchasing an existing event agency lies in the already established networks and business relationships with clients, suppliers, and venues. You take over a well-coordinated team with deep industry expertise and benefit from proven processes and event concepts. By combining this foundation with your entrepreneurial vision, you can develop the company with a future-oriented approach, for example, by integrating digital event formats or tapping into new customer segments.
Are you looking to sell your company or specifically acquire an event agency? The event industry is characterized by its diversity—from technical equipment rental to full-service event agencies to specialized providers for particular event formats. This diversity offers numerous entry points depending on your personal strengths and interests. At the same time, it opens up potential for specialization and niche positioning, which can provide decisive advantages in a competitive market.
Preparation and Process of Business Acquisition
A thorough due diligence is especially important for event agencies, as specific industry factors must be considered. In addition to classic financial metrics, analyze the composition of the client base, the repeat order rate, and dependence on individual major clients. Particular attention should also be paid to technical equipment—its age, condition, and maintenance status—as this can constitute a significant portion of the company’s value.
Valuing an event agency requires industry-specific know-how. Besides tangible assets such as technology and equipment, intangible factors like customer relationships, brand reputation, and the creative portfolio play a crucial role. An experienced M&A advisor with industry knowledge can help you accurately assess these factors and determine a fair purchase price.
Financial planning should take into account the seasonality of the business and potential fluctuations throughout the year. Many event agencies experience pronounced peak periods, such as summer (festivals) or year-end (corporate parties), which impact liquidity and personnel planning. Review available funding programs that are specifically offered for the acquisition of companies in the creative and SME sectors.
When structuring your purchase financing, also consider the possible need for investments in modern event technology or digital tools for hybrid events to position the agency for the future. A solid financing plan covering both the purchase price and operating funds for the initial months is essential for a successful start.
Understanding Industry-Specific Particularities
The event industry is characterized by high labor intensity. The success of an event agency largely depends on the qualification, experience, and creativity of its employees. Conduct in-depth discussions with key personnel and verify whether they will remain with the company after the takeover. Project managers and technical experts, in particular, are often difficult to replace and represent significant value.
Carefully review existing contracts with clients and suppliers. Pay special attention to terms, notice periods, and any change-of-ownership clauses that may come into effect upon a change of ownership. For larger events, contracts are often signed years in advance, which on the one hand provides planning security but on the other hand entails long-term commitments.
Another important aspect is risk management. Event agencies often bear considerable responsibility for participant safety and must maintain extensive insurance coverage. Examine existing insurance policies, safety concepts, and compliance with relevant regulations and approval procedures. These factors can have significant financial implications and should be included in your due diligence checklist.
The event industry is also subject to constant change due to technological innovations and evolving customer needs. Assess the agency’s adaptability and its track record of innovation. Companies already offering hybrid event formats, virtual reality, or innovative staging concepts are often better prepared for future market developments.
Legal Form Considerations in the Acquisition
The legal form of an event agency plays an important role in the transaction structure and the associated legal and tax implications. Many event agencies are organized as a GmbH (limited liability company), which can offer various advantages during acquisition. If you intend to acquire a GmbH-run agency or want to sell a GmbH yourself, specific legal aspects must be considered.
In the case of a GmbH, the purchase usually takes place as a share deal, where the company shares are transferred. This has the advantage that all contracts, permits, and legal relationships of the agency remain unchanged. This can be particularly beneficial in the event industry, where long-term customer relationships and contracts with venues or service providers represent significant company value.
Alternatively, an asset deal is possible, where individual assets and legal positions of the agency are acquired. This option can offer tax advantages and allows you to selectively acquire only the desired parts of the business. However, in an asset deal, all contracts must be renegotiated or transferred, which can be challenging, especially for framework agreements with clients.
In any case, seek support from specialized attorneys and tax advisors to find the optimal acquisition structure for your situation. The right arrangement can have significant effects on purchase price, liability risks, and tax burden.
Implementation and Next Steps
The actual takeover of an event agency requires careful planning of the transition phase. Ideally, a gradual handover takes place, where the previous owner remains available for consultation for several months and accompanies you to important client meetings. This ensures continuity and facilitates the transfer of client relationships, which in this industry are often strongly person-dependent.
In the first months after the acquisition, focus on stabilizing operations and getting to know the core processes. Participate in various event formats from planning through execution to develop a deep understanding of workflows. At the same time, involve your employees closely and gather their ideas for improvements and innovations.
After this consolidation phase, you can begin implementing your own strategy. This may include tapping into new market segments, introducing innovative event concepts, or optimizing internal processes. Currently, particularly promising areas include sustainable event concepts, hybrid event formats, or specialized industry events with high value creation.
Also leverage digital channels to increase the agency’s visibility and attract new clients. A professional website, active social media presence, and targeted content marketing measures can help strengthen your event agency’s market position and secure long-term growth.
Success Factors for Event Agencies
Success in the event industry is based on several key factors that you as a prospective buyer should consider. First and foremost is the ability to develop creative and innovative concepts that capture the zeitgeist while meeting clients’ specific needs. Therefore, review the agency’s creative portfolio and its ability to adapt to changing market conditions.
A second crucial success factor is project management. Events require precise planning, coordinated logistics, and flawless execution under often challenging conditions. Analyze the agency’s existing project management tools and processes and evaluate their efficiency and scalability.
Technical equipment and expertise in handling modern event technology form another important competitive advantage. Agencies that own high-quality equipment can not only save costs but also respond more flexibly to client demands. At the same time, technology represents a significant investment factor, whose maintenance and regular renewal must be included in long-term financial planning.
Last but not least, networking capability plays a central role. Successful event agencies have a broad network of reliable service providers, venues, and creatives. This network enables the successful execution of complex projects with specialized requirements and thus represents significant company value.
Identifying and Leveraging Growth Potentials
The event industry offers various growth paths that you can strategically pursue after acquisition. A promising option is specialization in certain event formats or industries. Agencies positioning themselves as experts in specific event types such as professional congresses, product presentations, or corporate events often achieve higher margins than generalists.
Another growth area lies in internationalization. Many medium-sized event agencies limit their business to regional or national markets. Expansion into international markets, for example through partnerships with agencies abroad or establishing your own branches, can open new customer groups and significantly increase business volume.
Digital extensions of the service portfolio also offer considerable potential. This includes not only hybrid or virtual event formats but also accompanying digital services such as personalized event apps, live streaming solutions, or data-driven analyses of participant interactions, which provide added value to clients and open additional revenue streams.
Finally, consider the possibility of vertical integration. Many event agencies successfully expand their business model by incorporating areas such as event venue management, catering, or specialized technical services into their portfolio, thereby covering a larger part of the value chain.
Recognizing and Minimizing Risks
Like any industry, the event sector carries specific risks that should be considered during acquisition. Dependence on major clients represents a significant concentration risk. Carefully examine the client structure and ensure the agency is not reliant on a few key clients whose loss could jeopardize the business.
Another industry-specific risk lies in seasonality and the associated liquidity fluctuations. Event agencies often experience pronounced peak periods followed by quieter phases. Solid financial management and sufficient liquidity reserves are therefore essential to remain operational during weaker periods.
Regulatory changes can also have significant impacts on business operations. Stricter safety requirements, environmental regulations, or approval procedures can cause additional costs or restrict certain event formats. A proactive compliance strategy helps minimize these risks.
Lastly, the event industry carries an elevated reputational risk. Problems in event execution, safety incidents, or negative media coverage can damage the company’s image permanently. A transparent communication strategy and professional crisis management are therefore important components of successful business management in this sector.
Expert Tip: The Right Advisors for the Acquisition Process
Purchasing an event agency requires specialized expertise and should be supported by experienced advisors. In addition to classic M&A consultants who manage the transaction process, it is advisable to involve experts with industry knowledge. They can better assess the specific values and risks of an event agency than generalists.
For financial due diligence, collaboration with auditors experienced in valuing service companies with a high proportion of intangible assets is recommended. They can help identify hidden risks in the balance sheet and provide a realistic valuation of the company.
Lawyers specializing in business acquisitions and familiar with event law support you in contract drafting and reviewing existing agreements. Particularly important are aspects such as the transfer of copyrights to event concepts, the takeover of employment relationships, and the design of liability disclaimers.
Leverage our expertise for your successful acquisition of an event agency. In a personal consultation, we will analyze your ideas together and develop a tailored strategy for the business purchase. Find the right advisor now and benefit from our network and many years of experience in supporting business transactions in the event industry.