M&C Saatchi - IPO, British Airways loss and One Word
Equity
The Saatchi brothers are iconic figures in the advertising
industry. M&C Saatchi was founded in 1995 and led by
a partnership of Maurice Saatchi, Jeremy Sinclair, Bill
Muirhead and David Kershaw had been built into one
of London's leading independent international advertising agencies. When
asked if we would manage the communications surrounding their
forthcoming IPO we leapt at the opportunity.
The float had its challenges
from a communications perspective. The previous
incarnation Saatchi and Saatchi had soared high only to fall. The
brothers were almost as famous for wanting to acquire the Midland
Bank as for their advertising. The M&C strategy was to
grow internationally through organic hiring and growth, with selected
small acquisitions in certain markets.
We knew that the announcement
of the IPO would attract significant media attention - the challenge
was to enable the new management team, including the next generation
of young turks, to be fairly represented and to ensure the market
understood their strategy and investment case. As predicted,
coverage was extensive but positive. The
market warmed to the IPO and the Offer was over-subscribed.
The
focus of our work then changed to helping the company establish
the processes and procedures for the on-going communications
demands of being a public company. We developed an investment
case, liaised with the sell side analysts to build their following
and played a major part in the preparation of statutory announcements and
presentations.
We could not have prepared for the bombshell of
losing the BA account. This was a hugely symbolic moment
in the life of the Company and we worked hard to ensure that
amidst the intense media coverage of the account change the market
and the media understood that whilst sad at the loss, the
agency had moved beyond relying upon it and that it only accounted
for 6% of revenue.
Since then Tulchan has continued to advise M&C on its ongoing
communications and reputation. Among other projects was the successful
launch of Lord Saatchi’s new business model for advertising,
One Word Equity. Tulchan placed a 900 word piece by Lord Saatchi
in the FT on the day of his launch speech at the Cannes Lions
Advertising Festival. An online Q&A was set up with Lord
Saatchi on FT.com on the day. This ensured advance publicity
from the FT and prominent promotion on the masthead. The One
Word Equity site
was launched featuring an audio podcast of Lord
Saatchi, interviewed by Susanna
Voyle of Vox Media, a sister company to Tulchan .
The project generated worldwide press, TV and radio
coverage and future requests for interviews alongside significant
interest from potential M&C clients.