Setting aside political allegiances, none of us can fail to notice how governmental policy and regulation is playing an increasingly intrusive role in life and with it in business and therefore also in communication.  Shaping how businesses operate, compete, and grow, reflecting the growing complexity – and sometimes apparent schizophrenia – of regulatory environments.  Governments taking heightened roles in addressing societal challenges and no more so than on changes of administration, which most of the world’s population has experienced in the last 12 months.

No surprise, therefore, on the Boardroom focus this attracts, as very eloquently described by FTI Communications.

Also no surprise, as M&A is often a strong lagging indicator of both industry headwinds and – to a lesser extent – tailwinds, we have tracked more than 50 completed deals in this consulting and communications vertical since the last Trump administration, making this is a disproportionately active sector for M&A.

With the latest of its five transactions since IPO in 2021, Public Policy Holding Company (PPHC), is doubling down on this phenomenon very purposefully and is building a very interesting international capability, consolidating the fragmented government affairs and public policy communications market.  Specialising in Government relations, public affairs, crisis management and boasting over 1,200 clients, including nearly half of the Fortune 500, PPHC bridges policy advocacy with corporate communications.

 The latest PPHC firm, TrailRunner, is headquartered in the US with offices from London to Dubai, and brings required combination of corporate affairs, crisis communications, litigation, and reputation management.  And it operates at scale as suggested by the initial purchase price of $33m, with potential earnout consideration that could increase the total deal value to $70m.

So – in this market context – why TrailRunner, and why now?

  • Geographic Expansion: PPHC isn’t just buying a firm; it is continuing to establish a global footprint in some of the world’s key political and economic centres
  • Service Diversification: TrailRunner brings expertise in areas where PPHC can expand its offerings, like litigation communications and sports advisory
  • AI and Information Inflation: Cutting through the noise of AI-generated content whilst maintaining authenticity is crucial, and TrailRunner’s crisis management expertise fits perfectly here

An insipid global economy masks areas that are changing and growing at staggering pace and, sadly, AI-driven misinformation is one of those mushrooming areas.  But where businesses are exposed and need strategic counsel there is opportunity amidst the chaos, fuelling potential growth for this sector.

With PPHC leading the charge through strategic acquisitions, and in line with industry trends leveraging AI and geopolitical insights, it’s solidifying its role as an industry frontrunner.   We expect to see this momentum continue to transform the comms and public affairs landscape, driving a more general shift towards the need for greater service integration and diversified service offerings from this consulting and communications sector.

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