• Recent Posts: Influencer Relations

    Fersht: some IIAR award-winners “just tick the boxes”

    Fersht: some IIAR award-winners “just tick the boxes”

    Some of the firms mentioned by the IIAR’s analyst team awards fall short of excellence. That’s the verdict of several hundred analysts who took our Analyst Attitude Survey, and of the CEO of one of the top analyst firms. Phil Fersht left the comment below on our criticism of the IIAR awards. We thought we’d reprint it together with the […]

    Do the IIAR awards simply reward large firms?

    Do the IIAR awards simply reward large firms?

    The 2016 Institute for Industry Analyst Relations’ awards seem to be rewarding firms for the scale of their analyst relations, rather than their quality. In a blog post on July 6th, the IIAR awarded IBM the status of best analyst relations teams, with Cisco, Dell and HP as runners-up. Together with Microsoft, which outsources much of its analyst relations to […]

    Unmaking fruit salad: 6 ways to help analysts segment markets

    Unmaking fruit salad: 6 ways to help analysts segment markets

     It’s a common challenge for providers: some new or fast-changing market contains very different solutions. Clients want either apples or oranges, but the analyst research reads more like fruit salad. As new solutions come into old markets, or as analysts try to squeeze hot new solutions into their less-exciting coverage areas, it’s increasingly hard for users of analyst research to make […]

    Control in Analyst Attitude Surveys

    Control in Analyst Attitude Surveys

    Because a lot of analysts take part in our Analyst Attitude Surveys, we are able to offer clients what we call a control group. In the language of research, a control group is a group of people who don’t get the treatment that we want to measure the effectiveness of. For example, most firms might be focussed on a top tier […]

    Time for a new direction in AR measurement?

    Time for a new direction in AR measurement?

    Worldwide, Analyst Relations teams are committed to fostering the best information exchange, experiences and trusted relationships with tightly-targetted global industry analysts and influencers. Sometimes the targeting is too narrow and analysts are treated inhumanly. However, the technology buying process is transforming and so must the benchmarking of analyst relationships. There’s already a long-term transformation of analyst relations. Over one-third of technology […]

Forrester acquires JupiterResearch – will the analysts stay or walk?

logo-forrester.gifForrester Research acquired JupiterResearch for $23 million in cash plus assumed liabilities. JupiterResearch joins Forrester’s Marketing & Strategy Client Group. Click here to read the press release and click here to read a blog post by analyst Josh Bernoff.

The key question for any analyst firm merger & acquisition (M&A) activity is whether the acquired analysts – the core intellectual property value – stay with their new employer or leave. For example, in the case of Gartner’s acquisition of META more than 50% of the analysts left voluntarily or through buyouts within a few months.

Our initial impression is that the JupiterResearch acquisition is more of an expansion of Forrester’s services than a consolidation move to eliminate a competitor. This is similar to Forrester’s Giga acquisition, but different from Gartner’s grab of META which was clearly a strategic move to keep META out of Yankee Group and kill a competitor. Regardless of motivation, it is still possible that Forrester will lose many of the analysts unless they execute the integration correctly.

In addition to what happens to JupiterResearch analysts, this M&A event could also impact Forrester analysts as coverage assignments might be changed. Regardless of changes in coverage or even departures of Forrester analysts, there is a high probability that analysts in the Marketing & Strategy Client Group will find their productivity negatively impacted during the transition period.

For JupiterResearch prospects and clients currently negotiating contracts or renewals it makes sense not to execute on any new contracts. If you are an existing Forrester client, you should focus on whether or not you will need to expand your Forrester contract as access to the acquired Jupiter published research and analysts might be included in the current RoleView offering. For prospects and clients of Jupiter who are not Forrester clients, the situation is much more complex as you have to weigh the potential value of a Forrester contract if the Jupiter analysts you are interested in decide to leave the merged firm.

For analyst relations (AR) professionals, this M&A event impacts your analyst lists and outreach plans. Carefully monitor changes to analyst status (employment and research) coverage of both Jupiter and Forrester analysts and adjust your plans accordingly.

There are a number of relevant Forrester and Jupiter analysts that Twitter on a regular basis (see Analyst Twitter Directory). Because of the off-the-cuff nature of tweeting, monitoring the analysts’ tweets will provide an indication of the analyst morale and other transition issues.

SageCircle Advisory clients are encouraged to schedule an inquiry to discuss what this event means to them. Contact us at 650-274-8309 or inquiry [at] sagecircle dot com.

Bottom Line: While this M&A does not appear to be focused on killing a competitor, this does not mean that ongoing access to JupiterResearch’s analysts is guaranteed. Prospects of JupiterResearch need to evaluate the ongoing business value of a new Forrester contract if key analysts leave the combined firm.

Related posts:

Forrester buying Jupiter – smart, but not a big deal

Which acqusitions in the analyst industry were winners or duds?

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11 Responses

  1. This should be great for us and our clients. See our post on the topic: http://blogs.forrester.com/groundswell/2008/07/forrester-buys.html

  2. I got the following question via Twitter:

    cselland: @carterlusher where would they walk TO?
    about 7 hours ago · Reply · View Tweet

    Typically when analysts leave a firm post acquisition they do one of the following:

    1. Join another analyst firm
    2. Hang out their own shingle (i.e., start a firm)
    3. Join a vendor

    It is rare when an analyst gets hired by IT at a large enterprise or PR firm.

    Even in this economic environment, some firms are hiring. For instance, in yesterday’s Gartner Q2 earnings call, CEO Gene Hall mentioned that expenses in the 2nd half would go up in part due to hiring some analysts.

  3. How the might have fallen:)

    a little memorabilia here:

    http://news.cnet.com/Media-Metrix,-Jupiter-merge-in-414-million-deal/2100-1023_3-242455.html

    as Chris points out, there’s a shortage of good analysts out there right now. Am sure Forrester will want to keep most of the analyst talent they have acquired. In addition, they can now push after the internet media space without much competition,

    PF.

  4. […] this happened (when Giga was acquired) there was initially quite a lot of hope followed by quite a few analyst movements. Time will tell what the outcome of this move will be – however, if we follow George Colony’s […]

  5. Hi Phil, Thanks for the comment.

    Great link [makes me a bit nostalgic]. What was also interesting was the number of acquistions Jupiter had made to grow.

    Trivia questions – who was an early, minority investor in Jupiter Communications? Why Gartner Group! GG made a $8m investment in the startup in Oct 97 to get a 32% stake.

  6. Josh, thanks for the comment.

    Yes, there is great potential for relief for Forrester’s overworked social media analysts. >>grin<<

    Seriously, if Forrester does a decent job on the integration, then it will turn out to be a win-win situation for the firm and its clients.

    However, history shows that successful acquistions in the analyst industry are few and far between.

  7. […] Forrester acquires JupiterResearch – will the analysts stay or walk? […]

  8. […] acqusitions in… on Forrester buying Jupiter – sma…Forrester buying Jup… on Forrester acquires JupiterRese…Forrester buying Jup… on Which acqusitions in the analy…Forrester buying Jup… […]

  9. […] this happened (when Giga was acquired) there was initially quite a lot of hope followed by quite a few analyst movements. Time will tell what the outcome of this move will be – however, if we follow George Colony’s […]

  10. […] purchase, therefore, is not “business at usual”, to take Carter’s phrase. It’s a sign of the time – that recession is making the owners of analyst […]

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