Thoughts on acquiring "creative" businesses? E.g. game studios, ad agencies

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November 19, 2020

by a searcher from Stanford University - Graduate School of Business in Dallas, TX, USA

video game, creative, acquisition, industry

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Reply by a searcher
from Johns Hopkins University in Atlanta, GA, USA
Appreciate the endorsement ^redacted‌. I have experience(s) in the ad/agency side of the house. As with any business purchase, the dependence on the owner's involvement is of particular importance. However, I believe this takes on additional weight in creative businesses. In addition, please be very knowledgeable about your own management style(s) and instincts. While I don't identify as "a creative," I enjoy leading/managing creatives and programmers (corralling?) - some people do not adjust well to the needs of a creative staff, and that can stifle the value they bring to the table in unforeseen ways. Happy to discuss in greater depth.
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Reply by a searcher
from Indiana University, Bloomington/Indianapolis in Dallas, TX, USA
Thanks for the tag ^redacted‌. FWIW, successful creative businesses need a replicable motor of creativity. Hollywood's studio system was contingent on that, as were the norms until 2010ish. Even with Netflix and all the OTT services, the playbook is the same - own a stable of dependable creatives and a means of distribution. If I were to look at a target business that relies on creative output, I'd focus on how do I ensure that I've cornered the resources that make the business viable.
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