When Private Equity Comes Knocking: What Law Firms Need to Know About the M&A Wave in Legal Marketing

KPMG won approval from Arizona’s Supreme Court in February of 2025 to launch a law firm in Arizona, making it the first of the Big Four accounting firms to be able to practice law in the United States. While the barriers between industries continue to blur, there’s another convergence happening that’s getting less attention: private equity groups have increasingly set their sights on digital marketing agencies, particularly in the legal space.

I’m not going to name names—not because the information is necessarily confidential, but out of respect for colleagues who’ve been open about their acquisition discussions. What I can tell you is that several major players in legal marketing have been acquired in recent years, and more deals are in the pipeline.  And of course, if you’re wondering, “Is my agency one of them?” all you have to do is ask.

So, here’s the question every law firm should be asking: Does it matter if your marketing agency gets acquired by private equity? Should agencies be required to disclose these relationships? And what happens to the quality of service when financial engineering meets creative strategy? Let’s examine both sides of this equation, because the implications extend far beyond simple ownership changes.

The Concerning Realities of PE Acquisition

The most fundamental issue isn’t about ownership, it’s about priorities. Private equity operates with a laser focus on appeasing shareholders and maximizing margins. This creates what may be called a cultural collision course with agencies that need to prioritize experimentation and innovation to succeed.

The pressure to deliver consistent returns often leads to cost-cutting measures that compromise service quality. When PE firms prioritize safe, proven strategies over bold, innovative approaches that actually move the needle in competitive markets like legal, clients feel the impact immediately, even if they don’t understand why their campaigns suddenly feel more generic.

There’s also a knowledge gap that’s impossible to ignore. PE executives typically lack a deep understanding of digital marketing’s rapidly evolving landscape. Try explaining attribution models, algorithm changes, or the nuances between branded and non-branded search performance to someone whose background is in manufacturing or retail (yes, there will be PE representatives that have had success in retail and then venture next into the legal marketing space). The learning curve is steep, and the strategic decisions made during this gap can be devastating.

But perhaps most concerning is the “roll-up” strategy that PE firms love. The average deal multiple in North America shot back 7% to 11.9 times earnings before interest, taxes, depreciation, and amortization (EBITDA), this data representing ALL acquisition deals. The plan is simple: acquire multiple agencies, consolidate them to maximize EBITDA, then flip the combined entity for a higher multiple.  Why sell a company with 2.5m in EBITDA for a 6x multiple when you can tack on 2-3 more agencies to command 5m for 7-8x right away?

Here’s the problem: research shows that between 50% and 80% of all M&A deals fail to achieve their intended goals or end up destroying shareholder value. During these tumultuous consolidations, client relationships suffer, key talent leaves, and the unique value propositions that made individual agencies successful get diluted beyond recognition. This may be the toughest part about these situations, as the clients who aren’t abreast of the changes up top are feeling the rockiness reverberate to their campaign, wondering “what the hell is going on?”

The cross-selling pressure creates another layer of ethical complexity. When your agency’s recommendations are influenced by what benefits the PE firm’s broader portfolio rather than what’s best for your specific needs, trust erodes quickly. You might find yourself being pushed toward solutions that generate revenue for other portfolio companies rather than optimal solutions for your firm.

Finally, the operational nightmare of harmonizing different contract structures, pricing models, and service levels across multiple acquired agencies often leaves clients confused about their rights and responsibilities as things start to settle down from the top. What you negotiated originally may be compromised or more ambiguous as new initiatives and models shake out. I can’t say this last part for sure, as I think more times than not, “contracts are contracts.”  But whatever is up for renewal may see terms change dramatically in some scenarios.

The Potential Silver Linings

In the spirit of SEO, my overall answer to this being “good or bad” for the company working with a PE-acquired agency would be “it depends.”  It depends on the roadmap after acquisition, their success with running agencies well post-sale, and the end goal of the PE itself.  While we covered the potential downside, there must, of course, be chances for an upside. They are as follows:

The most tangible advantage is access to expanded resources and expertise. Sellers often benefit from not only a PE firm’s capital, but also their acquisition and integration expertise and resources, to achieve the scale necessary to land enterprise brands as clients. This can mean specialized teams for different digital channels, advanced analytics capabilities, and access to premium tools that smaller independent agencies couldn’t afford.

Contract protection during transitions can provide real value, especially in today’s inflationary environment. Existing clients often get grandfathered into their original pricing while gaining access to enhanced capabilities—essentially receiving more value for the same investment during the transition period.

The cross-selling concern has a flip side that some business owners actually welcome. PE portfolios often include complementary technology companies, CRM providers, and marketing automation platforms. With sufficient budget, the right digital expertise, and a data-focused approach, digital marketing can be a huge growth lever for SaaS companies. The potential for integrated solutions and bundle pricing can create legitimate value.

Leadership expertise is another potential benefit. Many PE firms bring seasoned executives with extensive experience scaling businesses and navigating economic challenges. This network effect can open doors to new opportunities and partnerships that might not be available from smaller independent agencies.

Our Path Forward

After weighing these factors, I’m being transparent about our position: Market My Market has no current plans for outside investment, PE negotiations, or acquisition discussions. We’re building something different—a sustainable, growth-oriented agency that puts client success above purely financial engineering. While this is a capitalist venture like most others, what we do with the outcomes of strong margins and profitability doesn’t immediately flow down to angel investors and speculative VCs.

What’s most important to us right now is maximizing the transformative potential of AI and large language models without the pressure of external investors pushing for short-term returns over long-term innovation. We want to look back on this period as a time when we rode the wave of technological change rather than being consumed by it.

The agencies that will thrive in the next decade (or even a few years) won’t be those with the most sophisticated financial structures. They’ll be the ones that successfully blend human expertise with technological advancement while maintaining genuine partnerships with their clients.

That approach doesn’t require private equity funding. It requires commitment, vision, and the discipline to prioritize substance over financial acrobatics.

When your marketing agency gets acquired, pay attention to the changes in strategy, communication, and results. The proof will be in the performance, not the press release.

Why Choose Market My Market?

At Market My Market, we understand how mergers and acquisitions in legal marketing can reshape your campaigns overnight. While many agencies adapt to new ownership models, we remain committed to long-term strategy, transparent communication, and real results. We aren’t beholden to outside investors, which means we make decisions based solely on what’s best for you, not shareholders.

With a decade of growth driven by performance, not financial engineering, we’ve built lasting partnerships through consistency and innovation. Our 30-60-90 day planning, real-time reporting, and collaborative approach keep your business goals at the forefront. Ready to work with a partner focused on stability and forward momentum? Call (800) 997-7336 or reach out through our contact form.