Does being bought kill the spirit of an ad agency?
Collecting a down payment of £3.5 million for selling half a company that Chime bought for £24 million in 1997 inevitably begs the question of what went wrong, but perhaps more important is the question of how any buyer of a people business can minimise the risk of the investment turning sour. Two aspects merit closer attention. First, how can a buyer preserve all the beneficial cultural characteristics of the business it acquires? And secondly, to what extent can “earn-out” arrangements retain the ongoing commitment of the vendors in any event? In the first year after the HHCL sale, Rupert Howell remained actively engaged in the agency, notwithstanding his new role as the joint chief executive of Chime. Then followed a couple of years as the IPA president. Alex Lury left within weeks of the deal, followed some time later by the former HHCL finance chief, and close ally of Howell, Robin Price. What’s more, the financial inducement for the vendors to maintain HHCL’s profitability had ex
