Abby Ellin’s article in yesterday’s Times re-reminded me why I love owning an independent public relations firm.
Her article, entitled “After Selling the Company, Remorse” profiles a number of entrepreneurs who, having sold their companies, rued their lives reporting to parent companies.
The public relations world is littered with the debris of acquisitions gone bad. I know many, many erstwhile entrepreneurs who tell riveting, post-acquisition horror stories.
Don’t get me wrong: the buyer isn’t always to blame. Most mergers and acquisitions fail because of culture clashes. The other obvious problem occurs when the former entrepreneur finds himself shackled to new and strange rules and regulations. And, hey, after years of being the boss, it’s tough to take orders.
I’m hard pressed to think of one truly successful acquisition in the PR world. Sure, some are still in effect, years after the transaction. But, I can’t think of a single ‘seller’ whose image and reputation has improved as a result of a parent company’s acquisition. The latter like to ‘sweeten’ the acquisition talks by enumerating the various cross-selling opportunities within the holding company structure. But, when I speak with friends who have sold to the WPPs, Omnicoms and Interpublics, I hear the exact opposite. In fact, I’ve been told that some firms within holding companies have become arch enemies.
So, while I’ve learned to never say never, I continue to resist the notion of Peppercom one day belonging to someone else. I know Pepper, wherever she is, feels the same way.