(01)EngagementOverview
Strategic buyer acquires Faktory for growth.
Faktory is a full-service marketing and advertising agency specializing in the healthcare sector. Founded in 2005 and headquartered in Salt Lake City, Utah, Faktory has built a solid reputation by providing strategic and creative solutions for some of the largest healthcare systems across North America. With over 90% of its revenue coming from recurring contracts, Faktory offers a diverse range of services, including paid media, creative and brand strategy, production, public relations, and more. The agency’s team excels at helping clients build consumer-centric brands and campaigns that inspire and educate, leading to increased brand loyalty and audience engagement. The agency’s client base includes some of the top healthcare providers, and the founders are looking for a strategic acquisition partner to help scale the agency and achieve its growth goals.
(Details)
- Engagement Sell-Side Representation
- Type Full Sale
- Category Digital Product & Web Development, Paid Media & Lead Generation, SEO, Under $10M
- Buyer Type Strategic Acquirer
- Deal Size $5M-$10M
- Services Valuation & Market Positioning, Buyer Targeting & Outreach, Offer & Negotiation Support, Due Diligence Management, Closing & Transition Support
(02)Inside TheEnterprise
Who Is Faktory?
Faktory’s expertise lies in crafting highly effective marketing campaigns for healthcare organizations. Their service offerings include paid media management, creative strategy, branding, content creation, video production, public relations, and customer engagement. Faktory works closely with its clients to build brand awareness and drive consumer engagement through various digital and traditional channels.
The agency has made a name for itself by developing and executing impactful healthcare marketing campaigns, such as increasing public awareness for Primary Children’s Hospital and Centura Health, with measurable results in increased awareness, conversion rates, and media engagement.
(03)Founder'sMotive
The Why Behind The Sale
The founders of Faktory are looking for a strategic partner who can provide the capital and resources needed to scale their operations. They recognize that Faktory has reached a stage where additional growth is possible, and they believe that partnering with a buyer who can bring additional resources, financial support, and industry expertise will allow the agency to expand its reach and capabilities. The founders are eager to remain on board post-acquisition to ensure a smooth transition and continue contributing to the agency’s success.
(04)Founder’s Vision
Criteria for the Perfect Acquisition Fit
The ideal buyer for Faktory is a company with experience in healthcare marketing or a related sector, who is capable of supporting the agency’s growth and expansion. The buyer should have the resources to scale the agency’s operations, particularly in the areas of public relations and enterprise-level healthcare systems. Additionally, the buyer should value Faktory’s strong management team and be willing to maintain the agency’s culture while providing the necessary support to expand its market presence.
(05)Setting the Stage
Preparing Faktory for Acquisition
Merge emphasized Faktory’s impressive financial performance, with a significant portion of its revenue coming from long-term retainer contracts, which provide a stable and predictable income stream. Merge also highlighted the agency’s deep expertise in healthcare marketing, along with its successful track record of executing large-scale campaigns for high-profile clients. The agency’s ability to cross-sell services, such as public relations and creative strategy, further enhances its value proposition to potential buyers.
(06)Attracting Suitors
Strategic Marketing of Faktory for Acquisition
Merge positioned Faktory as a highly profitable and well-established healthcare marketing agency with a proven track record of delivering results for clients. The agency’s strong revenue model, long client relationships, and extensive healthcare expertise made it an attractive acquisition target for buyers looking to expand their presence in the healthcare sector. Merge also emphasized Faktory’s potential for growth in new service areas, such as public relations, and its ability to scale its operations to meet the needs of enterprise-level healthcare organizations.
(07)Sealing the Deal
Perfect Matchmaking with the Ideal Buyer
The acquisition by TrendyMinds enabled Faktory to leverage new resources, expand its service offerings, and enhance its competitive position. TrendyMinds recognized Faktory’s valuable client base, healthcare expertise, and management talent, making them the ideal partner. Faktory’s founders remained integral to the leadership team post-acquisition, driving continued success.
(08)Unlocking Synergies
Positive Impacts Post-Transaction
Since joining TrendyMinds, Faktory has significantly expanded its public relations and digital capabilities, leveraging the buyer’s resources to cross-sell enhanced services to existing clients. The additional financial backing and strategic resources have positioned Faktory for sustained growth and an expanded market presence within the healthcare sector.
(09)Finding a New Home
The Merge Difference
Merge played a pivotal role in matching Faktory with TrendyMinds, facilitating a seamless transaction that met strategic objectives on both sides. Their expert matchmaking, negotiation support, and tailored guidance ensured alignment of growth objectives, highlighting Merge’s unique capability to foster successful, value-driven acquisitions.