(01)EngagementOverview

Strategic buyer acquires Studio Misfits for growth.

Founded in 2009 in California, Studio Misfits is a leading web design agency specializing in branding, performance marketing strategies, and immersive web experiences. The agency’s 23-person team works closely with its primarily CPG (consumer packaged goods) clients to build highly engaging, high-converting websites using platforms like Shopify and WordPress. Known for combining design expertise with technical precision, Studio Misfits has partnered with brands such as Brooks, Corepower Yoga, and Koia to deliver exceptional digital experiences that drive lead generation. With a solid foundation in both branding and performance marketing, Studio Misfits is now seeking a strategic acquisition partner to bring additional leadership, resources, and scalability to its already successful model.

(Details)

  • Engagement Sell-Side Representation
  • Type Full Sale
  • Category Digital Product & Web Development, SEO, Paid Media & Lead Generation
  • Buyer Type Strategic Acquirer
  • Deal Size Under $5M
  • Services Valuation & Market Positioning, Buyer Targeting & Outreach, Offer & Negotiation Support, Due Diligence Management, Closing & Transition Support

(02)Inside TheEnterprise

Who is Studio Misfits?

Studio Misfits is a versatile digital agency that excels at blending branding, design, and performance marketing. Their primary focus is on creating high-quality, highly interactive websites that enhance user engagement and drive sales for clients in the CPG sector. The agency’s creative and technical teams work together to produce tailored solutions using a variety of platforms including Shopify and WordPress. Studio Misfits also stands out for its ability to create immersive, experiential websites with custom animations, interactive elements, and a deep understanding of clients’ target audiences. Their blend of creativity and strategy has made them a trusted partner for premium brands like Brooks and Corepower Yoga.

(03)Founder'sMotive

The Why Behind The Sale

The founder of Studio Misfits is seeking an acquisition partner who can provide the resources and strategic leadership needed to expand the agency’s growth. After years of success, the founder recognizes that scaling the business to the next level will require a buyer with a larger operational infrastructure. The founder is committed to a smooth transition and plans to remain involved to support the team and ensure continued success. The goal is to find a partner who values the agency’s culture, creativity, and ability to execute high-quality marketing strategies.

(04)Founder’s Vision

Criteria for the Perfect Acquisition Fit

For the ideal buyer, Studio Misfits is looking for a partner who has the ability to provide operational support, resources, and strategic leadership to propel the business forward. The perfect acquisition fit is a buyer with experience scaling creative and marketing agencies, ideally in the CPG space. The agency values its culture and creative autonomy, so the right buyer must appreciate the team’s talent and the importance of maintaining continuity for both employees and clients. The ideal partner would also be able to recognize the growth potential in Studio Misfits’ immersive and experiential web offerings, leveraging these capabilities to expand the business.

(05)Setting the Stage

Preparing  Studio Misfits for Acquisition

To position Studio Misfits as an attractive acquisition target, Merge emphasized the agency’s strong financials, with a 20% profit margin, a diverse revenue model, and a history of successful projects with high-profile clients. The agency’s proven ability to execute high-quality work, combined with its track record in both long-term retainers and project-based engagements, made it an appealing asset for buyers. Merge also highlighted Studio Misfits’ strong client relationships and its expanding presence in the digital marketing space, demonstrating the agency’s potential for further growth.

(06)Attracting Suitors

Strategic Marketing of Studio Misfits for Acquisition

Merge positioned Studio Misfits as a high-growth agency with strong capabilities in web design, branding, and performance marketing. By showcasing the agency’s proven ability to drive business results for top-tier clients, Merge attracted several interested buyers. 121, a leading digital marketing agency, emerged as the ideal partner. The acquisition allowed 121 to enhance its service offerings while benefiting from Studio Misfits’ expertise in both creative design and performance-driven marketing campaigns. The partnership also offered 121 the opportunity to expand into the immersive web design market, where Studio Misfits has built a strong reputation.

(07)Sealing the Deal

Perfect Matchmaking with the Ideal Buyer

The acquisition of Studio Misfits by 121 was a strategic move that benefited both parties. For 121, acquiring Studio Misfits provided immediate access to high-quality talent, an expanded service offering, and a robust client base in the CPG sector. The cultural fit between the two agencies, combined with the shared commitment to delivering exceptional results, made for a seamless transition. The founder of Studio Misfits received financial security and the support needed to scale the agency’s operations while maintaining a strong connection with the team and clients.

(08)Unlocking Synergies

Positive Impacts Post-Transaction

Since the acquisition, Studio Misfits has continued to grow and strengthen its market presence. By leveraging 121’s resources, the agency has been able to expand its offerings, enhance service capabilities, and improve client acquisition strategies. The integration of 121’s sales infrastructure has already led to an increase in business opportunities and the successful acquisition of larger clients. Studio Misfits’ unique expertise in immersive web experiences has opened new revenue streams, and the combined agency is now better positioned to capitalize on the growing demand for interactive digital experiences.

(09)Finding a New Home

The Merge Difference

Merge played a critical role in identifying the right buyer for Studio Misfits. Through expert matchmaking, negotiation, and strategic guidance, Merge facilitated the acquisition process, ensuring that both parties aligned with the vision for growth and success. By carefully positioning Studio Misfits’ strengths, Merge helped secure a buyer that could both scale the agency’s existing foundation and introduce new opportunities for expansion. The success of this transaction underscores Merge’s ability to connect high-potential agencies with the right buyers, driving long-term growth and value creation.