Jeremy Harbour’s unique market proposition – the ‘agglomeration model’ – proves an outstanding success on NASDAQ First North, Stockholm with the listing of The Marketing Group PLC (TMG).
TMG listed on the 8th of June 2016 and quickly became the most successful IPO to list on the exchange in 2016. The stock was oversubscribed by 314%, with 333,000 shares traded on day one, and has since tripled in value. All, in less than a month.
What is the agglomeration model?
In short, an agglomeration involves several smaller companies coming together to collaboratively IPO in the form a much larger company while allowing the individual owners to maintain 100% control of their business. This results in a consolidated group with a greater diversity of products and specialisms.
Why TMG chose Marketing for Agglomeration?
Market control essentially sits in the hands of five big, multi-billion dollar market cap organisations. But, there are literally tens of thousands of smaller companies who work off subcontracts from the big five.
Jeremy Harbour noticed that a lot of the really valuable talent exists in these smaller companies, but their size often means they are unable to directly access capital and the bigger client contracts.
Consolidation through Diversification
Instead of trying to create a business that has one real specialism, the agglomeration model focuses on companies who bring diversified but complementary expertise and experience to the table across multiple markets. This reduces risk and drives shareholder value.
Who makes up TMG?
Today, The Marketing Group PLC is made up of 6 specialist agencies in 9 offices serving a global market. With a presence and client portfolio across the USA, Europe, Asia, and Australia, The Marketing Group PLC is strategically positioned as a global leader boasting a pool of top talent from every corner of the globe.
What’s in store for the future of TMG
As of June 27th 2016, the shareholders of TMG have given the Board the mandate to make strategic and tactical acquisitions within the group
For more about the agglomeration model and The Unity Group, please visit www.unity-group.com.